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-se...