How do you apply past risk management lessons to future situations?

Every time you are faced with a new challenge, you are required to present the past lessons from challenges or projects you have done in the past. The purpose of understanding and presenting the lessons of the past is not to silence the management but mainly to learn for the future otherwise the chances are that you will repeat the same mistakes

Risk for me is nothing but the probability of an event happening. If one were to quantify all the variables which impact an outcome, then Risk Management becomes easier. To do this one needs to have all past data (whether from their own experiences or others, doesn't matter). The more data one has, the better will be your model to manage risk.

In my consulting endeavors, I've often emphasized the importance of retrospection. After a major project, my team and I would sit down and dissect every decision made. Using tools like SWOT analysis, we'd evaluate our actions against the outcomes. This reflective practice, akin to a post-game analysis, has been instrumental in refining our risk management strategies over time.

Risk management is too defensive - recommend to constructively replace with opportunity exploration initiative! Even crossing a road is risky. Just thinking out loud - Risk averse is not to cross the road, risk measurement is waiting for vehicles passing by and risk mitigation is crossing when safe! Instead can we take it as an opportunity to built an over-bridge or underground subway and generate employment for few! Now if someone still wants to cross the road - he/she is looking for an opportunity for adrenaline rush!

In my experience it is helpful to leverage past experiences however with the rapid changes in technology, climate and economic it’s important to use PESTLE analysis to assist the interrogation of your risks

From my many years of experience in managing large projects, at the end of each project, I would perform an analysis and measure what worked and what didn't. Many tend to analyze only the less good or even failed things, but it is more important to analyze what you did well so that you can reproduce it in the future

Every project has its highs and lows. I remember a digital marketing campaign where we underestimated a potential risk. The fallout was significant, but the lessons were invaluable. Using root cause analysis, we pinpointed our oversight and ensured it never recurred. Successes teach you what to repeat; failures teach you what to avoid.

There's no silver bullet. Nevertheless, I personally have a journal for professional experiences. Taking notes in a place you can review later is a killer habit! I try to catch the feeling when is fresh, I write about, my personal view of the problem but also, create a DMAIC (Define, Measure, Analyze, Improve, and Control) matrix so I can revisit this somewhere in the future. It really helps when you're older.

Just recently, after resolving a large customer dispute project I performed an after-action review. 1) found it easy to collect items 2) found it easy to solicit a dialogue 3) Scoring the items was a little challenge 4) Leadership accepted the recommendations 5) Implementing the changes - that is always the challenge! That is where the heavy lifting starts ???♂?

the "Risk" principle in TIGERS 6 Principles encourages groups to embrace a balanced approach to risk-taking and actively learn from both successes and failures. Through the analysis of historical outcomes, the identification of patterns, and a commitment to continuous improvement, teams can make more informed decisions, adapt to changing conditions, and build a culture of resilience and agility. This is easy to systemize for onboarding new people through stories. When people share their mistakes, it makes everyone smarter and more aware. We installed the golden egg award with one client where mistakes were discussed during meetings. This egg-on-the-face approach helped everyone build humility and learn from mistakes.

A risk plan as its name is, a plan that means it lives and breathes throughout the life of the project and therefore it is constantly required to monitor and control and update it according to the situations. For example, if the intensity of a risk that was at a high level has decreased, then it is also necessary to update in order to be focused on the real risks

Adaptability is key. In the ever-evolving digital landscape, what worked yesterday might not work tomorrow. I've always been proactive in updating our risk management frameworks, ensuring they align with the current market dynamics. Regularly revisiting and tweaking our strategies has kept us agile and ready for any challenge.

Risk is a living and breathing group process that sometimes changes on the fly to meet team challenges. This is most true when plans are developed in isolation and without team input. The "Risk" principle encourages a culture of continuous improvement. It instills the idea that every experience, whether positive or negative, holds lessons that can be applied to future endeavors. Teams are motivated to implement changes and refinements based on these lessons, leading to more effective decision-making and risk management over time when they have input from the start. This applies to co-created group process and group behavior norms contributed for risk mitigation and conflict resolution.

Revisit your risk tolerance based on past experiences. Assess whether your previous risk tolerance levels were appropriate or if they need adjustment. Be willing to adapt your risk tolerance to align with your organisation's evolving goals and circumstances. Ensure that you communicate and collaborate effectively with others involved in risk management. Share the lessons learned from past experiences with your team, encouraging a culture of continuous improvement. Collaboration can also lead to diverse perspectives that enhance risk management strategies. Lastly, schedule regular reviews of your risk management processes and lessons learned. This practice ensures that your risk management approach remains relevant and adaptable.

Maintaining a robust risk management framework is paramount in the modern business landscape. Periodic assessment and adjustment of risk management strategies are essential for aligning them with evolving business. Frameworks such as ISO 31000 and COSO ERM provide structured guidelines for optimising risk management practices. Furthermore, the use of tools such as risk matrices, heat maps, and dashboards enables organisations to prioritize, communicate, and monitor risks effectively. Regular monitoring and control of risks are essential components of a dynamic risk management process. By integrating past lessons, industry best practices, and established frameworks, businesses can enhance their resilience and make informed decisions.

I worked for an organisation that had annual awards for a variety of categories - one of those was taking a risk and trying something new. Staff could nominate others and tell their story. This type of initiative encourages creativity and celebrates individuals or teams of people innovating with potential for a positive impact on the business. It also leads to plenty of inexpensive fail-fast approaches, and means it is not always the responsibility of leadership in a top-down approach, but rather everyone's responsibility to identify ways to do things better or create entirely new opportunities.

If you set an example to the other employees in the organization and show that you are managing the risks then you will notice that those around you are doing the same. If you require this from your employees as part of the routine then it will become a habit

Culture is the invisible hand that guides decisions. I've always championed a culture where risks aren't shunned but embraced as learning opportunities. Through workshops and training sessions, we've cultivated a team that views risks through a lens of opportunity, ensuring that every challenge is met with innovation.

First, emphasize Trust and Genuineness. Trust is foundational to a risk-aware culture. Encourage trust and genuineness among team members and leaders, as these principles create an atmosphere where people feel safe sharing concerns and uncertainties related to potential risks. Second, promote Interdependence and Empathy. Interdependence and empathy are critical for understanding the impact of risks on team members and stakeholders. Encourage team members to consider the perspectives and needs of others when assessing risks. This collaborative approach can help identify risks that might not be immediately obvious to a single individual and lead to more comprehensive risk assessment. Finally, lead by example. People will follow.

Integrating past risk management lessons with ISO principles offers a systematic approach to decision-making. Simultaneously, fostering a risk-aware culture and mindset within organizations ensures that risk management becomes ingrained in the organizational DNA. By aligning documentation, pattern recognition, continual improvement, and integration with ISO principles, individuals and organizations can fortify their risk management capabilities while nurturing a culture that values and prioritizes risk awareness. In this way, they can navigate a complex and ever-changing landscape with greater resilience and confidence.

It is difficult to accurately predict risks in the future, so it is necessary to constantly update the risk plan. But it is possible to assess risks for the future arising from your professional experience together with the analysis of relevant environmental influences

Foreseeing potential risks is like predicting the weather in the volatile world of digital business. Using scenario planning, we've often anticipated market shifts, allowing us to pivot our strategies proactively. This forward-thinking approach has not only mitigated risks but also uncovered hidden opportunities.

We are amidst a digital revolution. Even if you are a successful business, what got you there in the first place won't necessarily be the same formula to keep you there - or grow. You only have to look at the predictions of Goldman Sachs economists that generative AI could replace up to 300 million jobs globally. Carving out time to think about how the world or your industry is changing, and how this might impact you or your key customers is an important part of being ready to pivot if you need to. What new business models can you be thinking about and trialing now? What new customers might you be able to start testing the waters with?

It is important to identify patterns. Through a systematic review of past experiences, groups can identify patterns and trends. They can recognize recurring themes in their decision-making processes, risk assessments, and actions taken. Identifying these patterns allows teams to make more informed choices in the future, building on successful strategies and avoiding previous pitfalls.

Anticipating and preparing for future risks is not merely a defensive maneuver; it's a strategic imperative. By applying the knowledge gained from past risk management experiences and combining it with forward-thinking approaches like scenario planning, horizon scanning, and diversification, you position yourself and your organization to not only survive but thrive in an ever-evolving landscape. Embrace risk as a catalyst for growth and differentiation, and you'll be better equipped to seize the opportunities it presents.

In the realm of digital strategy, assumptions can be costly. I've always advocated for a test-and-learn approach. Whether it's a new marketing tactic or a business process, we experiment on a small scale first, gather data, and then make informed decisions. This iterative approach ensures our strategies are always data-driven.

Basic concepts of the six steps: Prototyping: Creating prototypes to test risk management options. Pilot Testing: Running pilot tests for different risk management solutions. A/B Testing: Comparing and measuring the effectiveness and feasibility of risk management strategies. Feedback Loops: Utilizing feedback mechanisms like surveys, interviews, or analytics to collect and evaluate data on risk management experiments. Learning from Results: Incorporating lessons learned from the experiments and tests into future risk management approaches. Examples can be using A/B testing in different cybersecurity measures for data breach prevention.

The most challenging aspect for experienced leaders when experimenting and testing assumptions is to confront their own beliefs and acknowledge that they are continually learning. It involves battling their ego and resisting the temptation to dismiss subtle warnings until they evolve into full-blown crises. This is what distinguishes humble, experienced leaders from those who might be more experienced but tend to be impatient. Humble leaders have confidence in themselves while remaining open to signals and input from others. In the business world, there are numerous examples of companies, both large and small, that have suffered because they failed to pay attention to those subtle warnings.

I completely agree that nothing beats data-driven decision-making, and I cannot work any differently. Testing and learning in small iterations are essential for refining our learning and business agility strategies (similar to risk management strategies) and making informed choices based on real-world results. It's all about continuously improving and adapting to evolving challenges.

Flexibility is key. Be flexible in understanding that each case has to be treated with its own assumptions, experiment and testing. Sometimes, it can have similarities, yet treat each experiment as a new experiment to avoid any potential previous bias. Learn from the past pragmatically. Discuss with those around you, while studying the possibilities of repeating experiments and assumptions, even in case of a positive outcome.

Traditional risks is one thing - and most companies have at least 'a way' of doing that. Intuitively, or formally. No matter if they're small or large. However, in the time and age of ESG / Sustainability, risks that we have hardly have a good way to plan for or indeed assess are emerging. Albeit of course some scientific data does exist. For example: how are physical assets put at risk by climate change? What about your supply chains and products to the already existing damage in biodiversity and the resulting raw material supply constraints? I could go on. There are methodologies for that, but most risk management people are entirely unaware of these, or do not know how to use them appropriately. ... A skills update is needed.

One of my most memorable risk management lessons came from an unexpected source: a junior team member. He questioned a long-standing process, leading us to re-evaluate and eventually refine it. The lesson? Always keep an open mind. Sometimes, fresh perspectives can unveil risks (or solutions) that might otherwise go unnoticed.

Quoting Jeff Bezos, mechanism works, good intentions don’t. Setting a mechanism that take into consideration past risks, severity an likelihood to occur and wage it against the trade offs is the best way to manage risk. It allow to take calculated decisions ensuring long term profit of organisations.

To prevent repeating previous errors and anticipate potential risks, creating a risk management traceability matrix is crucial. This will enable you to track the links between past risks, lessons learned, future risks, and strategies for preventing them. Involving stakeholders, such as risk lines of defense, risk owners, and affected groups, is essential in establishing an ongoing monitoring and reporting process.

Life is full of surprises. Besides presenting the process and tools, it's important to consider worst-case scenarios and configure the process for the team. It is important for teams to have a generic process to manage unexpected situations, regardless of the risk scale, to ensure preparedness and readiness to take action.