Reactivity Leads to Captivity

Reactivity Leads to Captivity

Taking a reactive approach to risk management means we are captive to limited thinking.

This blog was prompted by a question from a participant in the webinar I ran with Camms Group last month on Risk Reporting: How to Provide Summary in Detail. The question was: “Is risk management reactive or proactive? Risk assessment being about what happened rather than what might happen in the next quarter or next 6 months.”

When I run the RMIA’s Enterprise Risk Management course or my Mastering Risk Workshop Facilitation course I run an activity to make sure participants understand the true purpose of risk assessment (Hint: it’s not to collect a bunch of risks). It’s to ask interesting questions to help people unleash their minds from inherent beliefs and our penchant to believe our plan will work. Because it is our plan after all.

At the same time as pondering this issue I sent this article, How to Mine Synthetic Data: Pros and Cons of a Shiny New Tool for Risk Managers, to my colleague Dr Andrew Pratley to get his views on it. He replied with comments around the uncertainty of “black boxes” built on these approaches, ending with:

“I think the most important point she made was to note that usually big changes are negative and no model will predict this the first time it happens. People need to think about more casual factors than torturing the historical data for answers that don’t exist.”

Therein lies a perfect example of the need to unlock our captive thinking. The trick is identifying how in-depth to go. The more critical the outcome sought, the deeper you should dig into your mind and the minds of others.

Stay safe!

Votes: 0
E-mail me when people leave their comments –

Bryan is a management consultant operating since 2001, specialising in risk-based decision making and influencing decision makers, born from his more than twenty years of facilitating executive and board workshops.

Bryan’s experience as a risk practitioner includes the design and implementation of risk management programs for more than 150 organisations across the public, private and not-for-profit sectors.

Bryan is the author of Risky Business : How Successful Organisations Embrace Uncertainty; Persuasive Advising : How to Turn Red Tape into Blue Ribbon, and Team Think : Unlock the Power of the Collective Mind [to be published in 2022].

He is licenced by the RMIA as a Certified Chief Risk Officer (CCRO) and is the designer and facilitator of their flagship Enterprise Risk Course since 2019.

<a href=""></a>

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!