Risk

Because we have far more control than we think we do. That means we have more responsibility than we often accept. Upon examination, we may discover just how much of the risk we face depends on us—and how much control we can exert in the face of the unknown.

The reality is that we all tend to maintain the status quo and “keep doing what we’re doing.” This is something we have to recognize and often work to overcome. In organizations inertia can be a reason for retaining positive habits, and it can also be a reason for continuing behaviors that were never consciously started.

Effective action begins when we overcome inertia. It demands recognition of the need to act and the courage to take the step—absent that, inertia rules. Once in motion, we must constantly surveil our actions to determine if they are contextually appropriate, or if their intended effect backfires.

we do have dominion over ten key dimensions that we can adjust at any given time to take control over our response: communication, narrative, structure, technology, diversity, bias, action, timing, adaptability, and leadership.

An Unclear Mission. The organization does not understand what it’s trying to do. This is all too common. Lack of a Strategy—or Failure to Follow It. There is a lack of alignment across the team on “how” the mission is to be accomplished. Often strategies brief well but are either unrealistic or simply ignored. Poor Communication. The parts of the o

Lehman Brothers couldn’t manage risk properly because its risk management functions were buried in corporate hierarchy. Make no mistake: the team’s risk assessments were not incorrect because they disregarded the idea of risk management entirely—in fact, Lehman Brothers had several formal mechanisms to Detect, Assess, and Respond to risk—they were

Detect threats. Assess the risk they represent, based on our own vulnerabilities. Respond to avoid or mitigate any negative effects of the risk. Learn so that we are well prepared if the risk reappears.

Time and again we see that the greatest risk to us as individuals, and to our organizations, is us.

SYMPTOMS OF TIMING CHALLENGES Hurry Up and Wait. Poorly timed decisions can often cause some parts of the plan to be rushed, and others to be painfully delayed. Undercooked Cake. Taking a cake out of the oven too early means a soggy, unappetizing mess. Cutting corners and speeding up processes can compromise the end result. Jumping the Gun. Sprinte