Risk - effective engagement v. Management tick box exercise?

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WBS FORUM RISK MANAGEMENT trick or treat?

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Part 1 of 3 on Risk Management, panel presentation at Warwick Business School 11/02/2008Kiki Maurey, www.kikimaurey.com

Transcript of Risk - effective engagement v. Management tick box exercise?

Page 1: Risk - effective engagement v. Management tick box exercise?

WBS FORUM

RISK MANAGEMENT

trick or treat?

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

implicit in my title is that there 2 critical aspects to risk management

1. a formal, highly structured activity of assessing key areas of risk and identifying formal codified responses === paper exercise

2. an approach where top management and staff are effectively engaged in ongoing risk assessment and risk mitigation === embedded human interaction

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

MIND THE GAP!!

Clearly there many organisations in the public, private and charitable/community sectors that effectively do neither.

So what does my hypothesis look like? …

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

staff/culturalengagement ?idealism

?reality

formal structural response

HIGH

LOW

LOW HIGH

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RISK - effective engagement v. management tick box?

So is there likely to be in reality, a trade off between:

formalised risk auditing activities, andeffective human/staff engagement?

© Kiki Maurey Consultancy Limited

And how much will internal organisational culture, and external imperative(s) act on:

the formal orientation to risk appraisal, andthe implementation of risk management systems?

some key questions

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

a young and growing SME in the travel/tourism sector, characterised by a down-to-earth response to risk assessment and management:

two very different examples

simple but effect RM plan linked to business plan

venture capital input

whole team engagement and ownership

an admission of vulnerability (market/environmental realism)

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

an NHS hospital trust (Maidstone & Tunbridge Wells) characterised by high complexity and formalised risk structures

two very different examples

complex high level RM plans

driven by externally imposed targets

impact of unexpected consequences of health policy

poor staff awareness, unclear specialist roles

poor Board intervention and ownership

senior complacency and systemic melt-down

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

sometimes risks crop up that you thought you had planned for and then you find new ones emerging

some quotes from Warwick Alumni

knowledge and systems management is the key, as is engaging staff, and ensuring continuity when people leave

how often do we hear that RM initiatives have failed because of ‘poor implementation’, which means in reality that ‘things fell down because of lack of investment in the human “glue” to hold it all together and this is the bit that is hard to measure’

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

people 'aspired-world‘objectives

'real-world‘ outcomes planning

EXTERNALITIES

INTERNAL

RESOURCE

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

from "The Poetry of Donald Rumsfeld“ - The Unknown

As we know, there are known knowns. There are things we know we know.

We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, The ones we don't know we don't know …

There will be some things that people will see. There will be some things that people won't see.

… and life goes on.

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RISK - effective engagement v. management tick box?

© Kiki Maurey Consultancy Limited

external acuity

some initial conclusions, ie what’s really important?

an ability to act fast and out of character

integrated RM systems

humanised ownership and engagement

widening the risk periscope

extent of ‘psychological safety’

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WBS Forum - ‘RISK MANAGEMENT. Trick or treat?’

© Kiki Maurey Consultancy Limited

any questions for Mike, Chris and Kiki?