1. Zoom out for a big picture idea of organisational risks
There’s a bit of a stereotype that some people, like engineers, are focused on the fine details of their work whilst management is perhaps too focused on the big picture. There is certainly some truth to this, but it need not be a complete binary. Management can and should try to see the bigger picture, whilst being careful not to neglect specific details.
This is why managers such as risk management professionals should use an approach such as Management By Objectives (MBO) which breaks down the big picture of organisational risk management into individual components that can be addressed one by one.
2. Err on the Side of Pessimism
Although it might not feel uplifting, a risk management professional should always be ready to see the worst possible consequences of a business operation. Think of it a little like a bouncer at a nightclub: the venue owner doesn’t want them to ruin anyone’s night, but they must keep them at the door and inside of the premises to quickly respond to any problems that may arise.
Risk management professionals must be ready to identify potential risks before they materialise. For example, an office might have arranged to have a large number of hard drives recycled. Your job is not to celebrate the completion of this task and to move on, but rather you should be analysing the possible risks of improper asset disposal, such as the potential for sensitive data to be breached.
3. Work With Experts
Much like how a project manager must work closely with key stakeholders in a project, including experts such as engineers, designers, and so on, a risk management professional must be willing and able to work with interdisciplinary experts within the organisation and, at times, expert consultants.
There are many avenues for risk within (and from without) an organisation that can be overlooked without consultation from experts. By working closely with colleagues and by better understanding the nature of their work and how it affects the organisation, risks can more acutely be identified, categorised, and managed.
4. Seek Frequent Feedback from Colleagues
Not only is it important to gain feedback from colleagues in order to foster a better business relationship with them, but it’s also critical for identifying possible risks over a timeline and across a wide spectrum.
Risk management professionals should frequently seek feedback and input from all key members within an organisation, including entry-level employees all the way up to the CEO. What may appear as a possible risk to one may be completely overlooked by the other, for example.
5. Perform Internal & External Research
Risk management is neither completely reactive nor is it completely proactive - it must be a good blend of the two approaches. In order to accurately identify risks, risk management professionals must constantly be undertaking internal and external research to better understand how risks may be progressing over time.
Internal research includes analysing the possible risk vectors stemming from business operations, whereas external research may include industry or global trends that may affect how your organisation manages risks. There are many tools that can be used for classifying and categorising internal and external risks, such as a SWOT analysis and/or from using a robust software package that helps risk management teams excel.
Risk Wizard UK and organisational risk management
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