In a conversation with a senior finance executive of a Japanese transnational, world renowned for its products in the automotive industry, as well as for its quality assurance controls, this Executive could not understand, in my first technical advisory sessions for his company, that the level of technologies to be used by me in Risk Control, for the benefit of your Company and its Workers, on the one hand, and in the Eradication of Other Risks, in addition, required cutting-edge technologies. Technologies that have nothing to envy to the technologies of the automotive industry, just to give an example.
From there, the idea was born to specify some thoughts in the face of the figures and the facts, as well as the successful practices, proven in reality, which allowed me to communicate to the top Japanese executive, as well as to other clients, that the Management of Advanced Risks is not an upstart pseudo-discipline and it has little to do with alchemy.
The most significant technical-scientific fact, of practical application, in the 20th century was the sending, with acceptable levels of risk, to a man to the Moon and bringing him safely back to Earth. the reader can imagine, in the face of this fact, that NASA not only resorted to the best technologies to devise fuels that would allow a "ship" to reach the Moon and then return, overcoming the forces imposed by Earth's gravity, but also to Contain and Mitigate a Level of Risks never before confronted by humanity.
To advance in the explanation of the origin of the technological base (foundation) used by Advanced Risk Management, at present, I suggest that we imagine a Pyramid. We will call it, for the practical purposes of this publication, the “Pyramid of Technology”.
At the top or highest upper part, in the Technological Pyramid, the Sector corresponding to Aerospace Technology is found. This Sector, which is the most intensive in capital requirements (including intellectual capital), on the one hand, and, above all, due to the multiple demands of research and development, we will call Sector 1.
Sector 2, then, corresponds to the one that uses and provides Technologies from Civil, Commercial and Military Aeronautics.
In Sector 3, later, we find Military Technologies.
Although this basement of technological application, of the "higher" and "lower" flows to Sector 3, the latter included, gives sources of technologies applicable to Risk Management, for any application thereof, and, for the purposes practical - given its serious complexity, we will award Sector 5 to "Advanced Technologies in Health Risk Management", being, of course, Sector 4 the one related to cutting-edge technologies, derived from Medical Care (preventive, curative and perfectives) proper.
In Sector 6, we find the technologies used or offered by serious and recognized representatives of (i) the Insurance Industry, (ii) the Consultants Specialized in Risk Management, (iii) the Technical Advisors in Management of Collective Benefit Plans to the Personnel (for example, dental benefit plans, optometric benefit plans), (iv) Technical Consultants specialized in topics related to the appropriate management of “Human Resources”.
Subsequently, in Sector 7, the technologies used or offered by serious and recognized representatives of (i) Global Consultants in Management (and their Transformation) and Business (and their Innovation), (ii) Other Industries with strong investment needs are available of capital in its Research and Development functions.
In Sector 8, we find the technologies offered by (i) the Research and Development Centers, (ii) the Universities.
In Sector 9, there are Companies or Consultants, as well as managers, of Information Technology.
At this time, it is worth clarifying that all Sectors are very important. Precisely, in the coherent and consistent compilation of the technological sources of each one of them, is where the best technological level for the advanced application in Risk Management is found.
Sectors 1, 2, 3 and 4, which we will call the "Upper Segment" of the Pyramid of Technology, nourish Sector 5, which specifically deals with the Management of Health Risks (I remind the reader that, for For practical purposes, we are using the “Health” facet, but, in the same way, we could give practical applications to Risk Management in the face of hazards and dangers of Industrial, Commercial, Vehicles, Aircraft and Maritime Vessels, among others.
Sectors 6, 7, 8 and 9, which we will call the "Lower Segment" of the Pyramid of Technology, also nourish Sector 5. Among all the Sectors, synergistic interactions are established, which increase, exponentially, the power, in practice, of the different technological sources and their corresponding applications.
The Base of the Technological Pyramid is narrower in Sector 1, while its breadth is much greater in Sector 9. The more technological sophistication, the narrower the respective Sector in its basement and the lower the number of civil applications or not.. At the highest degree of technological sophistication, closer to Sector 9, the technological sophistication is even greater, but the base of applicability is smaller and more refined.
The Upper Segment is much more intensive in the Requirements for Research and Development of Technologies, while the Lower Segment is less intensive in the Requirements for Research and Development of Technologies.
In Sectors 1 and 2, of the Aerospace Industry and Aeronautical Industry, respectively, they have a behavior in their Risks, where the “severity” and the “magnitude” of the losses is, to say the least, extreme. Also, in these two cases, the “frequency” of losses is minimal.
This publication may offer the reader a clear understanding of why it is so absolutely vital in this world of newer technologies - for which there has not been time to record claims behavior, as technology life cycles in implementation, the boom and the termination in such life cycles are so, so fast, diffuse and unpredictable, use very complex Management Tools, but of great power, as is the case of Systems Methodology, perfectly adequate for the Management of Risks In the Systems Methodology, it is also essential to incorporate the Quantitative Analysis of Risks, among other sub-tools.
