Riskonet adopts the Dynamic Business Model
In 2019 Riskonet will raise the bar by mainstreaming the Dynamic Business Model in its consultancy practice. Clients will mostly benefit from stronger inventories and analyses of their companies, which will result in a better understanding of and advice on their risks.
The adoption of the new model came about in close collaboration with Lizanne Vroom who has worked as a risk management expert and consultant for 21 years. Lizanne Vroom may call herself the ‘spiritual mother’ of the Dynamic Business Model. She worked with the entire Riskonet team for four days to introduce and embed the model in practice. “Our experiences with Lizanne and with the model are so positive that we will seek closer collaboration in 2019,” explains Ron de Bruijn, Director of Riskonet.
The roots: complexity and dynamics
The need to work with a model like the Dynamic Business Model lies in the complexity and dynamics of organisations in 2019. Vroom: “Think about the modern technology that they use, the aspects of sustainability that are expected of them and the impact of regulations. Also remember the many cross-linkages with other organisations – clients, suppliers and others – that make it challenging for organisations to see and analyse themselves as single entities. That complexity and dynamism can be supported by a good model that brings structure and soundness to evaluating assets, risks and actions. It clarifies how issues such as safety and prevention bring value to the client’s company model.”
“It is a method that helps gain understanding. A mirror that shows how a company is composed and its relationships with its environment. It makes it possible to plot the risks and vulnerabilities of a company in its organisational model. In my experience as a consultant, this model really helps map the conditions for continuity. It is a strong foundation for high quality consultancy,” says Lizanne Vroom. She adds that the model helps risk management consultants from falling into a well-known trap: advising on measures to take without knowing the complete context of the organisation. “Without understanding the issues at play, or whether an organisation is thinking about reorganising or expanding, what the client wants and what the company promises its clients.”
Strengthening the first step: assessment
Ron de Bruijn responds, “This model strengthens the first step in Riskonet’s three-step plan: the assessment. We can assess the client organisation better by applying the Dynamic Business Model and its structured approach. The model provides a framework that helps us gain a focused and systematic image of how the client organisation works – what are its goals, the reasons that it is organised in a certain way and its interests and dependencies. This fits Riskonet’s integrated approach perfectly: not only in terms of assets, but also in terms of going beyond a location. It also looks at insurability as well as company continuity. This allows us to create a reliable picture of the threats, risks and the way in which an organisation deals with these.”
Philosophy and tool
This makes the Dynamic Business Model both a philosophy as well as an exceptionally practical tool, believes Gerrit Vink, who will use it in practice in his capacity as Senior Consultant. “I expect our assessments to become stronger and match our clients’ practice and questions more closely. Furthermore, I see an advantage in that the research that we will do on our service provider will become more consistent. At a certain point, it will become best practice that will be commonplace at Riskonet and at our partners.
“This model allows us to analyse and advise in a more uniform and targeted way. It is a great jump forward.”
– Ron de Bruijn, Director Riskonet
An important consideration in putting the new model into practice in Riskonet is that it provides structure. De Bruijn explains, “Our approach to questions will become more consistent. This is not only appreciated by our consultants, but also by our clients. It gives clarity and creates the environment in which to manage expectations.”
The picture in all its complexity
It seems so logical that Riskonet’s advice takes account of the specific situation of the client’s organisation, its products and services, its clients and their demands, the risks and dependencies. “As far as we are concerned, it is logical,” says Ron de Bruijn. “The Dynamic Business Model approach will let us draw the picture as never before and see all its complexity. It’s methodical, meticulous, structured and, importantly, complete. It fits the client’s organisation and the outcome is even better advice. I am looking forward to using the Dynamic Business Model for our clients in the new year.”
“Clients that think in terms of opportunities and possibilities,” adds Lizanne Vroom. “They need to concentrate on their businesses and look to the future positively. What we can do even better in our profession is to inculcate a degree of risk thinking in their entrepreneurial spirit. This goes beyond filling out individual insurance checklists which only gives the appearance of security. What I mean is embedded risk thinking that is integrated in operational and business models.”
Would this lead to better advice? Ron de Bruijn responds, “Without a doubt. Our clients will really benefit from this. We will be able to support them better, take them through the thought process and look closely at what they are doing. It will give greater clarity on how they can handle opportunities and risks, and will be more strongly underpinned and targeted than before.”