Risk management home truths, with Alex Sidorenko

Today's Guest:

Alex Sidorenko is an experienced executive across strategic, investment and operational risks and insurance working within multibillion-dollar corporations in Australia, GCC and Europe.

Alex joins me to discuss his work in the field of risk management, how to create a risk profile, and the importance of using risk models.

We also talk about the skills you need to do risk management, the fundamentals of risk science, and the upcoming Risk Awareness Week which is starting on the 17th of October.

Connect with Alex on LinkedIn here: https://www.linkedin.com/in/alexsidorenko/

You'll learn:

• How to create a risk profile.
• The importance of operational risk management.
• The skills you need to do risk management.
• When risk management should be outsourced.
• The fundamentals of risk science.
• Why it's usually better to have a bigger deductible on your insurance.

Resources:

• Risk Awareness Week
• Jensen's inequality
• 16 best risk management books
• Decision Quality
• Thinking Fast and Slow
• The Purple Book
• Noise
• Slip Safety Services

In this episode, we talk about:

[2:35] Quantifying risk and creating a risk profile, a case study about investing in water treatment.

[13:55] The need for proper analysis when dealing with complex risk problems.

[15:12] Why reducing risk isn't always the right answer.

[20:35] How to define risk management and the importance of operational risk management.

[26:55] The skills you need to do risk management and when you should outsource your risk management.

[30:20] The fundamentals of risk science.

[36:45] How to improve relationships with insurance companies.

[45:05] When it's better to not get insurance and why it's usually better to have a bigger deductible.

[52:22] How Risk awareness week can help people understand risk.

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Quotables:

• 14:06 - "With qualitative view of the risk and the traditional regulatory approach to safety risk management there is no problem justifying trivial conclusions that are kind of obvious to everybody and there is only one way of solving the problem but as soon as you start going into a more complex area of mitigations costing millions of dollars and you start competing for investment budget with other hundred projects that have other needs that also cost millions of dollars it stops being trivial and you can not get non-trivial answer from trivial methodologies."
• 48:25 - "It's not a friendly partnership as insurance companies would like us to believe, no they're making a lot of money off us and for example, the conclusion that we came to unless the insurance was obligatory, so required by law, some contractual obligations, most of the time insurance actually makes no economic sense. There are certain situations where you have voluntary insurance policies where you're actually better off not insuring at all."

#safety #insurance #riskmanagement