Blockchain Based Risk Transfer

Daniel Robles, Co-Founder of Integrated Engineering Blockchain Consortium participates in Risk Roundup to discuss Blockchain based Risk Transfer.

Overview

The demand for transparency is increasing across nations: its governments, industries, organization and academia (NGIOA) as the current centralized systems do not power transparency and are proving ineffective.

Over the years, risk management has lost its meaning and way. Despite numerous efforts from across nations, how we manage risks today, remain largely basic, difficult to verify, and futile. This is due to many reasons as who identifies risks to who evaluates risks, who transfers risks to how risks are transferred, who manages risks to for whom the risks are managed plays a very important role in the global risk ecosystem.

When the risks from cyberspace, geospace and space (CGS) add to the complexity of the risk ecosystem, who can be trusted to manage all data about each and every risk from CGS and all its interconnections? The truth is that as of now, no single individual or entity across NGIOA can be trusted to identify, evaluate, manage or govern the growing complex interconnected and interdependent risks from CGS. This is a cause of great concern.

In the global CGS risk ecosystem, relying on any individual, or even an entity would create an inherent bias and weakness in the much-needed neutrality and transparency, risk management demands. This is mainly because anyone involved in the risk management or governance, would ultimately care for only its own bottom line or its interests and affiliates bottom line. This could lead to selective disclosure of risks or, worse, even extortion.

If the integrated cyberspace, geospace, space risk data were gathered by a neutral third party, it would have to be both totally unbiased and properly incentivized to deliver the technical and non-technical capability of running the complex global CGS risk ecosystem.

Some may say industry associations can fill the role. However, third parties like industry associations, depend on the funding from others. This largely makes them weak and vulnerable target for corruption and coercion.

So, what can be done? Who can fill the role?

It seems blockchain promises us a whole new approach and way of managing risks using a global peer-to-peer network that provides an open platform which can deliver neutrality, reliability, integrity, transparency and security in the way we manage risks. This changes everything.

It is important to evaluate further:

  • What objectives any blockchain based CGS risk management system needs to meet?
  • Who should develop the blockchain based global CGS risk management framework?
  • What should be the key components of the blockchain based integrated CGS risk management framework?
  • How will different types of CGS risk data be stored on a blockchain?
  • What is necessary to effectively transfer the risks?
  • How will blockchain be a machine of unparalleled digital security?
  • What would be the underlying premise of blockchain based CGS risk management approach or framework?
  • How would blockchain based CGS risk management approach meet needs of a digital global age?
  • What are blockchain unknowns?
  • How will blockchain prevent fraud?
  • How can independent risks be managed and its privacy, competitiveness and security be respected?
  • How to effectively scale blockchains across nations geographical boundaries while maintaining the national security?
  • How can compliance be executed where needed in real time?
  • How can risk assets be legally enshrined in computer code as a smart contract?
  • How to have a smart risk contract be programmed to execute the lifecycle events of a CGS security risk management framework?
  • How to establish a legal framework across NGIOA for both independent and interdependent CGS-security risk contracts?
  • How to effectively integrate the CGS risk regulatory and compliance framework to define global CGS security risk standards practice?
  • How to develop a culture of sharing information about CGS security risk?
  • How to develop a culture of being accountable for CGS security risk?
  • What should be the role of insurance in blockchain based CGS-risk management system?

Blockchain technology brings a promise of potential to manage not only independent but also interconnected and interdependent cyberspace, geospace and space risks facing individuals and entities across nations: its government, industries, organizations and academia.  Now is the time to talk about blockchain based risk transfer!


For more please watch the Risk Roundup Webcast or hear Risk Roundup Podcast


About the Guest

Dan Robles PE, MIB is the co-founder of the Insurance-Engineering Blockchain Consortium. IEBC is committed to researching and developing adjudicated smart contract applications for risk transfers in the infrastructure industries. Dan is the Founder of The Ingenesist Project (TIP), a think-tank developing business methods for blockchain technology in engineering, finance, and insurance. Also, founder of Community Engineering Services (CES), an engineering consulting firm in the Seattle Area that applies TIP research toward unique solutions for challenging engineering problems in the construction, aviation, and technology industries. Dan is recognized worldwide as a pioneer of intangible asset productivity and blockchain applications for the engineering profession. Dan’s background includes primary design of commercial and military aircraft, test engineering for the U.S. Space Shuttle, commercial satellite deployment systems, commissioning agent for commercial aircraft and service engineering for International Airlines. Mr. Robles worked on mechanical effects for television and film, and is an adjunct engineering and business lecturer. Dan is a Blogger at Ingenesist.com, Coengineers.com Insurancethoughtleadership.com, relationship-economy.com, and several others. Dan Robles is the founding Chairman of the FinTech Task Force for the National Society of Professional Engineers. Dan also serves on the Edmonds City Planning Board.

About the Host of Risk Roundup
Jayshree Pandya (née Bhatt) is a visionary leader, who is working passionately with imagination, insight and boldness to achieve “Global Peace through Risk Management”. It is her strong belief that collaboration between and across nations: its government, industries, organizations and academia (NGIOA) will be mutually beneficial to all—for not only in the identification and understanding of critical risks facing one nation, but also for managing the interconnected and interdependent risks facing all nations. She calls on nations to build a shared sense of identity and purpose, for how the NGIOA framework is structured will determine the survival and success of nations in the digital global age. She sees the big picture, thinks strategically and works with the power of intentionality and alignment for a higher purpose—for her eyes are not just on the near at hand but on the future of humanity!
At Risk Group, Jayshree is defining the language of risks and currently developing thought leadership, researching needed practices, tools, framework and systems to manage the “strategic and shared risks” facing nations in a “Global Age”. She believes that cyberspace cannot be secured if NGIOA works in silo within and across its geographical boundaries. As cyber-security requires an integrated NGIOA approach with a common language, she has recently launched “cyber-security risk research center” that will merge the boundaries of “geo-security, cyber-security and space-security”.
Previously, she launched and managed “Risk Management Matters”, an online risk journal and one of the first risk publications, publishing “Industry Risk Reports of Biotechnology, Energy, Healthcare, Nanotechnology, and Natural Disasters” over the course of five years. Jayshree’s inaugural book, “The Global Age: NGIOA @ Risk”, was published by Springer in 2012.

About Risk Roundup

Risk Roundup, a global initiative launched by Risk Group, is an integrated cyberspace, geospace, and space (CGS) strategic security risk dialogue for individuals and entities across nations: its government, industries, organizations and academia (NGIOA).

Risk Roundup is released in both audio (Podcast) and video (Webcast) format and is available for subscription at (Risk Group WebsiteiTunesGoogle PlayStitcher RadioAndroid, and Risk Group Professional Social Media).

About Risk Group

Risk Group is a strategic security risk research organization. It focuses broadly on the risks facing individuals and entities across nations: its governments, industries, organizations, and academia (in short referred to as NGIOA). Its approach is broad, encircling cyberspace, geospace and space (in short referred to as CGS). It firmly believes that collaboration within, between and across NGIOA will be mutually beneficial to all stakeholders across nations—for not only in the identification and understanding of critical CGS security risks facing one nation, but all nations.

Risk Group believes that risk management, security and peace walk together hand in hand. Though security is related to management of threats and peace to the management of conflict, risk management is related to management of security vulnerabilities as well as management of conflict, and it is not possible to conceive any one of the three without the existence of the other two. All three concepts feed into each other. Risk Group believes that the security we build for ourselves is precarious and uncertain until it is secured for everyone across nations. Tradition becomes our security-so if we build a culture of managing risks effectively it will lead us to security and security will lead us to peace!

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