Perfect the 5 “Hows” of Risk Management

Risk management is not about being right, accurate, or perfecting some algorithm. “Right” today could be “wrong” tomorrow, and these are not the metrics of risk management. The practice of risk management is more like the “practice” of being human: We are in the process of perfecting our response to unpredictable circumstances. 

In the case of production risk management, this means unpredictable markets, politics, weather, disease, technologies, labor practices, and operational shifts. Here are some factors you should be “perfecting” when it comes to risk management.

Change Your Conversation

  • Come to risk management conversations prepared to make decisions TOGETHER; not to argue what data is correct or incorrect. Resist the temptation of seeing different recommendations or strategies as competing or conflicting; they should serve as feeder data used to co-create the best recommendation customized for your operation given your goals. 
  • Decide and Deliver. Be clear at the end of every conversation as to what you have decided to do and then follow up with a conversation later that determines if you did what was agreed to.
  • Commit to a regular practice of fierce…

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