Today was an interesting day for Africa. Mubarak's resignation was a subject of conversation here in SA. It led to further discussions on political risks and how they can be managed.
I spent the day in Sandton City which is the financial and commerce center of JoBurg. Sky rise businesses all over. Looks like downtown financial hub of a major midwestern city. As mentioned in earlier blog two days ago. This barely existed 20 years ago. It was just countryside.
Today was probably the best day for figuring out how we will be organizing the internships. I met with NedBank and found a treasure trove of ideas on managing risks across the organization. I've never seen such a well- designed and documented ERM program. I met with the risk management team and we came up with some ideas for ERM case studies that I will be working with them on later.
When I got to Nedbank I was introduced to the risk management team and they brought me a binder on how risk is managed at NedBank. It was full of jaw-dropping detail on how the universe of risks are identified and managed across the organization. It is at least a generation ahead of anything I've seen in the states on ERM,( which isnt saying a lot since we are remarkably still in our infancy on ERM in the states). It was inspiring to see an organization that had a organizational culture that valued risk management and sustainable prosperity over short term quarterly earnings. (I keep mentioning culture don't I but I think this corporate culture comes from a larger national culture. That's my working hypothesis anyway).The investments they made in risk management did not pay off immediately but have over years yielded tremendous benefits to all stakeholders. They were so open with wanting to help with this internship project and help in the development of the next generation of leaders that I truly felt overwhelmed with the sense of good fortune in finding such great partners in this program. Our students and their future employers owe a debt of gratitude to these folks. I'll be back to work with them on case studies. They have some great ERM stories that we can turn into case studies. I think the students should start with this firm when they come here to learn about risk management in SA.
Next I met with Alexander Forbes. A broker/risk solutions firm that provides risk engineering, risk financing, and of course market broking services. This should be the second firm the students visit. They have a breadth of expertise across industries and will allow the students to begin to think like consultants before going out to the business clients to assess their risks. Another great partner for this.
MANDELA SQUARE
I finished up the day and walked through the shopping mall (see photo) to get to Nelson Mandela Square which is surrounded by restaurants.I ended the day at the famous Butcher Shop restaurant in Nelson Mandela Square with Gert and his wife. An nice T-Bone steak, Hensa Beer, and finally South African Amarillo Creme to top off unbelievably productive day. Tomorrow I go to Apartheid Museum. So this is a nice place to end the day. Mandela Square with children black and white playing in the fountain under the fatherly gaze of Nelson Mandela's statue.
Cheers.
jim
