We define risk as "the effect of uncertainty on objectives" (ISO 31000), however how often do we stop and ask if we have the right objectives in the first place? On what basis were they formed? When were they developed? Have times changed? In my experience facilitating risk workshops, often a poor or even incorrect set of objectives is the "elephant in the room" for the management team. Here are some tips for ensuring you have the right objectives:

 Stakeholder Analysis - Identify your stakeholders, group them to keep them manageable, analyse them. What are the positive elements of their views of us? What are the negative elements? How important are they? The key question here is whether your objectives align with those of your key stakeholders.

Macro Environment - There are many options for this, however, a favourite of mine is PEST which explores the Political, Economic, Social and Technology factors affecting the organisation or project. If here you identify significant threats or opportunities that are not covered by your objectives you may need to adjust them.

Industry Analysis - A powerful tool for analysis of the competitive forces in an industry is Porter's Five Forces. Although designed for industry analysis, it can be easily adapted to assess the internal competing forces within government or within an enterprise. You may find that your objectives are too ambitious or not ambitious enough.

Internal Analysis - For this analysis I prefer one of my own tools, RMP's Five Building Blocks which is the basis of RMP's risk management maturity model, the RMP Healthcheck. RMP's five building blocks are: Strategy linked to Performance, People linked to Knowledge, Processes linked to Systems, Assets linked to Liabilities and all supported by Organisational Culture. Once again, if you have key strengths or weaknesses that were not recognised when your objectives were set you may need to rethink them.




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="http://www.bryanwhitefield.com">www.bryanwhitefield.com</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!