CWF &amp; The Catalyst Network Seminar: Social Risk

CWF & The Catalyst Network Seminar: Social Risk

Forty years ago or more, most businesses used tangible assets such as land and machinery to produce tangible goods. In 1975, 85 per cent of the value of the largest listed US companies was in tangible assets. By 2015 this had flipped, and now 85 per cent of the value of the largest companies is in intangible assets such as human capital, intellectual capital and relational capital. Businesses today are people-based, knowledge-based and relationship-based. While human and intellectual capital are reasonably well-understood and measured by the HR and legal professions, relational capital is still poorly understood, measured and protected. Australia’s big four banks would attest to the increasing focus on the state of stakeholder relationships and ‘social risk’, after enduring their Royal Commission challenges.

Since the early 2000s, the first generation of metrics to measure relationships — tools such as the net promoter score and employee engagement — have enjoyed significant uptake. Now a second generation of tools is being shaped and used to generate greater depth of insight, identify root causes of relational issues, analyse relationships in a two-way manner, and help organisations look forward rather than backwards. In this presentation, Hadyn Bernau will make the case for measuring relationships and outline a methodology called relational analytics.

About the speaker

Hadyn Bernau is a Principal at Finity Consulting, Australia’s largest independent actuarial and data analytics consultancy. Hadyn brings the ‘hard’ discipline of actuarial science and data analytics to the ‘soft’ field of organisational relationships. He uses relational analytics to measure relationships, and identify organisations’ blind spots and social risks. His focus is to help organisations make better decisions that take into account their relational as well as their financial capital. Hadyn has co-authored a paper entitled ‘The Social Condition Report: A suggestion for financial services businesses’.