Risk management – how to make it a success story?
The most delightful projects are the ones which actually change behaviors, attitudes, and skills, not only the ones creating new processes, tools, measures, or reports. And the ones where you truly believe that the change will last after the project is closed.
Quite often we hear that risk management creates more bureaucracy in the organization than value. Our experience shows that the opposite can be true! As the evidence, we have just completed a risk management implementation project which can truly serve as a leading example that the change in how organization is lead has happened and will last.
To our strong believe, these are the key success factors for successful risk management implementation:
1. Clear future risk management responsibilities set and assigned during the project, which enable continuity of risk management after completion of the project | A project has the beginning and the end, but its results have to be live for a long time.
2. Understanding the importance of risk management and appropriate communication by the top-level management to the leadership team of the organization | No matter how flat and empowering organizational structures are, the attitude and priorities of the CEO sets the priorities.
3. Integration of risk management in the existing management routines of the organization, where possible, not creating new meetings, structures, reports | We do not create methodologically correct but isolated processes but try to adjust the existing organization and its routines.
4. Consistent and patient educative effort and behavior of the risk manager (officer) with all the leadership team throughout the project to identify, evaluate, and prioritize risks, set the indicators for monitoring, set risk management plans and their monitoring | Risk management is for all the leadership team of the company, not for the risk manager, but new routines require support to thrive.
5. Communication and trainings for all the organization via all level managers (messages are transferred to employees by direct leaders rather than external experts) | Information regarding culture and behaviors is better accepted and lived when it is transferred by the direct leader. Risk management is not just another document to follow – it has to be communicated consistently and clearly.