How can you effectively manage risk in a networked organization?

2 Align your vision and values

The second step to managing risk in a networked organization is to ensure that you have a clear and shared vision and values with your network partners. This will help you establish trust, accountability, and mutual respect, which are essential for effective collaboration and risk mitigation. You can use tools such as vision statements, value propositions, and codes of conduct to articulate and communicate your common purpose, goals, and principles. This will also help you resolve any conflicts or disagreements that may arise from different perspectives, expectations, or interests.

3 Adapt your governance and management

The third step to managing risk in a networked organization is to adapt your governance and management structures and processes to suit the complexity and diversity of your network. You need to balance the autonomy and interdependence of your network partners, as well as the flexibility and stability of your network operations. You can use tools such as network agreements, decision-making protocols, and feedback mechanisms to define and monitor the roles, responsibilities, and rules of your network. This will also help you coordinate and align your actions, resources, and outcomes.

4 Learn from your experience

The fourth step to managing risk in a networked organization is to learn from your experience and improve your performance. You need to collect and analyze data and information from your network activities, outputs, and impacts, as well as from the external environment and stakeholders. You can use tools such as surveys, interviews, focus groups, and case studies to capture and share the lessons learned, best practices, and challenges of your network. This will also help you innovate and adapt to the changing needs, opportunities, and risks of your network.

6 Leverage your opportunities

The sixth and final step to managing risk in a networked organization is to leverage your opportunities and maximize your impact. You need to identify and exploit the synergies, complementarities, and efficiencies that your network can offer, as well as the new and emerging trends, markets, and technologies that your network can access. You can use tools such as scenario planning, opportunity analysis, and strategic partnerships to explore and pursue the potential benefits and advantages of your network. This will also help you enhance your innovation, learning, and resilience as a networked organization.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?