PDA

View Full Version : Risk Identification- Challenges


sohpmalvin
12-14-2010, 08:53 PM
Hi Risk Managers/ Professionals,

Hopefully in this thread, you can share about the challenges you face in risk identification processes, and your attempts to solve them.

sohpmalvin
12-14-2010, 08:59 PM
Let me start off with the first one- Lack of incentive from other departments to disclose critical information.

As it is discussed in many other places, we can never know everything about an organization by ourselves. Especially for operational risks, we need the cooperations from other departments to give us a better picture of what risks are material and should be given appropriate attention.

The problem is, the related person in each department will ask themselves: "Why should I bother to share with you risk management people the risks in my department? Even if I don't get punished for revealing the risks, what do I get by telling you? Will it give more troubles/ works for myself if I share with you?"

Any suggestion?

limabeanactuary
12-15-2010, 07:54 AM
this may seem a bit unrelated, but read this:
http://hbswk.hbs.edu/item/6503.html

Many of the operational risks are coming from support staff area -- because they're the ones who actually have to operate once sales are made. They already feel under seige if they think of themselves as overhead. They're really not going to be happy if risks are just going to be presented as downside risks, and that it's all their fault.

It is related to what you wrote: "What's in it for me?"

You need to be able to make the case that there will be value in what you do -- in making their lives easier, perhaps [e.g., say your reports might make the case for the need for more resources.... support staff tend to like more resources, whether in terms of higher headcount or tech or training or whatever].