Risk

Let’s first focus on the basics. There are four key “tests” that determine if communication is effective. We’ll begin with two: The physical ability to pass the information (can or can’t) The willingness to pass it (will or won’t) ... The quality of the message (accurate, complete, timely, relevant) The receipt of the information (able or unable to

Too often and to great cost, individuals and organizations fail to mitigate risk because they focus on the probability of something happening—instead of what they can do about it. We will show that, in reality, the greatest risk to us—is us. And yet, conversely, we can also be our own greatest asset in overcoming whatever life throws our way.

Unable or unwilling to calibrate for important factors like communication, structure, and bias, we remain vulnerable to threats.

Action and other Risk Control Factors are invariably interconnected. For example, communication is often necessary to act, while narrative and bias either enable or inhibit our ability to act effectively. It’s a complex system, but ultimately, if we can’t overcome our coefficient of friction, the gears won’t turn.

Your Turn Does your organization’s structure function as envisioned? Does it help your team achieve its goals? Where is power located in your organization? Who benefits from being close to this power? Where in your structure is responsibility for risk? Is this responsibility understood and respected? The Bottom Line Structure enables or inhibits th

Communication, the essential enabler of the Risk Immune System, doesn’t happen spontaneously. As we saw in Chapter 3, natural reluctance, even outright resistance, to sharing information must be overcome through demanding leadership and personal example. Leaders must also constantly monitor potential intentional and unintentional misinformation. At

Is leadership facilitating or inhibiting the Detect—Assess—Respond—Learn process? How does leadership help the Risk Control Factors function individually and in concert? From your leadership perspective, what factors need the most work to ensure your Risk Immune System is performing? Do members of your organization identify with and feel committed

Is your organization positioned to adapt to changing conditions? Does a preoccupation with efficiency inhibit your ability to adapt? What other factors inhibit your ability to adapt to changing conditions? The Bottom Line Every threat is different—so too must be our responses. Constantly changing threats demand continuous adaptation.

In reality, risk is neither mathematical nor finite. Its impact depends to a great extent on how we perceive, process, and respond.