How to manage risk in complicated circumstances according to keynote speaker Paul Bracken
Numerous organizations make a gross mistake when they develop their risk management strategies basing them virtually entirely on warning. It is tempting to think that when you put the appropriate precautions in place you will be able to see a threat approaching just in time to step away from its fallout, but in reality it is extremely unlikely. No amount of investment, equipment and expertise is adequate to create a foolproof system of prediction and early warning and this pessimistic conclusion is true as a lot about tiny scale organisms as it is about countries or significant corporations. Sadly, both choice-makers and electorates are not willing to appear beyond warning as a risk management answer. Yale School of Management professor Paul Bracken argues that it is only when organizations extend their view of the issue to incorporate other strategies of assessing and dealing with risk that it stands a opportunity of becoming practicable, cost-effective and efficient.
Here is a look at the remaining five strategies, as described by this outstanding scholar and keynote speaker.
If you cannot totally predict dangers that may come your way, Bracken argues, you ought to try to take things in your own hands and shape the environment that engenders risk. This permits you to have a higher control over when and what type of threats you will be exposed to. It is of course an illusion to think that any single organization can influence the entire ecosystem and get rid of uncertainty altogether, but even a reasonable reduce in risk due to much better manage of the scenario is worth a even though. Importantly, if the source of risk is your enemies or competitors, there are approaches to shape their environment too.
One more creative and successful strategy of risk management is reaching agility. In contrast to in warning, this technique assumes that it is inevitable to be confronted with risks and trying to predict them is largely a futile pursuit. What a well-managed organization can do, nonetheless, is become flexible in its structure, operations or vision so when some uncertainty materializes, it can rapidly get over this period of interference and excel once again. Paul Bracken, an skilled company consultant and keynote speaker, provides the example of logistics systems that function this way in view of the fact that foreseeing each and every shift is unrealistic.
What can also help in managing risk is joining forces with organizations that are characterized by a similar set of problems. Cooperation might involve sharing intelligence and know-how, pooling resources so that there is no apparent doubling of expenses and other tactics. Alliances in the location of risk assessment and management are equally probable in company and government.
Smoothing is another strategy this reputed keynote speaker talks about. It is connected with breaking the ecosystem into sections that are simpler to manage and coordinate than the whole thing.
The final method is closely connected to the prior 1, with the difference becoming that it identifies the most essential elements and works to insulate them from risk, devoting a lot less attention to non-crucial parts of the method.