Breaking Through the Performance Barrier
Risk management policy and methods explicitly recognise that many risks are complex, interconnected, intangible and emergent.
Silos of risk thinking and action are reduced through a focus on higher-purpose and the need to seek “best possible outcomes” rather than to achieve targets.
Traditional risk management methods are enhanced with complexity-capable methods for risk inquiry, analysis and response. Risk conversations are broader, often combining all factors that matter not just threats.
The management culture both accepts and demands that decision makers do more than focus on “big risks”. The capability to deal with emergent risks is part of senior leaders’ conversations.
At this stage of development, the SLT has the advantage of knowing that their assets in terms of people, processes, facilities, IP and so on are secure, and are positioned to consider the ‘big strategic risk and opportunities’. The next step is to build on this platform. The challenge is often to break free from controlling threats and looking for opportunities. It is useful at this stage to look at the composition of the Senior Leadership Team to consider people with different viewpoints (see the Seven Transformations of Leadership here).
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