Posted initially on LinkedIn: Claudia Craia
Many years ago, I was seeing the effective risk management process only from its operational perspective. How to prevent or address losses.
Then I was involved more and more in the strategy of the company, and I wanted to make myself useful. So I started to learn about strategic risk management.
Even though I learned a lot and I found out how others, more experienced, do it, I still felt that it was not enough, as if I had not discovered the secret.
Until one day, when it happened.
The Director of Strategy told me that he wants to implement a risk assessment process for an important initiative and asked if I want to help.
I almost cried of happiness. I couldn’t believe that I had convinced him that the risk management process could help him and the company. Not sure I actually did it, but I will take credit for it anyway :).
We started. He quickly identified some risks. Yes, because he wanted us to start delivering. He did not want us to turn the risk identification process into a monster.
We determined who (experts) we needed to evaluate the risks and decide on the actions.
Then we met with the identified experts.
These are the lessons learnt:
💡It is very good if the sessions are led by the strategy person. I should say that an expert in risk management is needed (after all, I am promoting a consultancy company), but I can’t 😊. The process was very good because he could set the tone and didn’t get deep into the methodology (I don’t think he knew it either, he just intuitively approached it).
💡My role was to make sure that I bring the rigor of risk management. For example, at one risk we had four actions. The impact was high, but the likelihood was low, so I suggested that we focus on the contingency action, as if the risk will materialize rather than put resources in all four actions.
💡We (He?) kept everything very simple. Risk. Residual likelihood & impact. High, Medium, Low. Actions. THAT’S IT!
💡I tried to make the contributors talk more about each risk, to clarify the root cause, to think about alternative solutions.
I think it was a success.
They were ready. They knew what to expect. They did something BEFORE it happened.
I was also called, after that, the Crystal Ball lady. 😊
#RiskMentoring
#StrategicApproach
#ExecRiskInsights
#BusinessStrategy
