I think we now live in an era when many of the concerns in running organizations are being reframed in terms of risk, which suggests that risk professionals are likely to rise to the top.
Harvard Business Review
In Against the God: The Remarkable Story of Risk, the author says the mastery of risk is the foundation of modern life and is what divides modern humans from ancient times. So, the logic flow in Working It goes like this: VUCA => COVID disruption => Risk => RBPS/RBDM => Self management
COVID is now driving unexpected changes leading to lots of risks. So, let’s unpack these ideas. So, what is risk management? The dictionary defines risk as the “potential for the realization of unwanted negative consequences of an event.”[i] Murphy is alive and well – if something bad can happen it will. You can try to understand and mitigate Murphies or they can victimize you. The choice is yours. Risk management is the practice how you minimize the impacts of Murphies from crossing a street to starting a business. Why do you bother looking both ways when you cross a street? You look for possible sources of risk like a truck pancaking you.
By consciously or unconsciously calculating probabilities, you make intelligent decisions and take control of your life in COVID time. As discussed, this is called RBPS and RBDM. RBPS and RBDM are fundamental elements of all work from a hustling startup to a traditional organizational culture. RBPS is the ability to develop products that VUCANs will want during COVID. RBDM is the consistent ability and agility to make reliable decisions in COVID time.
You don’t have to make a conscious risk assessment in all situations but can intentionally and intuitively look at alternatives at how you work day-to-day. When you’re confident of an outcome, you decide it’s the right thing to do. Rightness comes when there’s risk congruence with your heart, head, and gut about risks that’s acceptable to you. And in COVID time, this can be tough.
Work Lesson Earned: As the world is becoming interconnected, Murphies are just waiting to occur. Understand risk management. Add it to your professional tool kit. Read risk books: Black Swan and Against the Gods: The Remarkable Story of Risk.
[i] Anatomy of Risk, William Rowe, 1988.