What are the most common performance issues that lead to operational risk?

Performance issues are created when focus is diverted or being diverted. There are many factors affecting however few like lack of clarity of role, unhealthy competition, inappropriate structure and hierarchy, biased leadership, lack of individual sense of responsibility, right person to the wrong job, wrong flaw of processes, lack of necessary SOPs. These may lead to big operational risks.

Here are some of the most common performance issues leading to operational risk: People: Lack of skills, knowledge, or motivation, leading to errors, fraud, or compliance issues. Processes: Inefficient or poorly designed processes leading to delays, errors, or inconsistencies. Technology: Outdated or unreliable systems, data breaches, or disruptions. Communication: Poor communication leading to misunderstandings, missed deadlines, or confusion. External factors: Natural disasters, power outages, or other external events causing disruptions. Remember, addressing these issues proactively helps mitigate operational risks and ensure smooth operations.

Dentro das empresas no Brasil, os problemas de desempenho que podem levar ao risco operacional incluem: Gest?o inadequada de recursos humanos. Processos internos ineficientes. Problemas de qualidade do produto ou servi?o. Gest?o financeira inadequada. Falta de inova??o e adapta??o ao mercado. Riscos de seguran?a da informa??o e ciberseguran?a. Conformidade regulatória inadequada. Falta de planejamento de continuidade de negócios. Problemas de relacionamento com fornecedores e parceiros. Cultura organizacional tóxica. Esses problemas podem afetar negativamente a eficiência, lucratividade e reputa??o da empresa.

In business, we have reinstated Cartesian dualism, on the one hand performance (the body), on the other mentality (the soul). This entails two opposing possibilities: replace the human element or enhance it. The first means setting out on an engineering quest to eliminate errors by means of automatic mechanisms; in reality, this is an illusion: how often, in fact, do human beings know how to compensate for machine malfunctions? Enhancing human capacities is a more complex process, because it implies rigour and creativity; the advantage is to transform every mistake and every success into continuous learning. The worst thing tis a middle way: standardising processes without taking into account the human beings who oversee them.

Common performance issues can lead to operational risks: 1. Favouritism in performance appraisal. 2. Lack of regular skill improvement training. 3. Assignment of job tasks shouldn't be unfair. 4. The hiring process must be robust to ensure that the right person is in the right position. 5. Mentorship by HOD's must be in place.

Inadequate training or experience among staff members can lead to mistakes, ineffective work practices, and eventually operational hazards. Employees may find it difficult to complete jobs effectively and efficiently without the necessary education, training, or experience, which could affect the organization's stability and overall effectiveness. Consequently, enhancing employee skills and knowledge through training and development programs is crucial for reducing operational risks.

Lack of skill and knowledge along with non willingness towards work leads to performance issues which further leads to operational issues to manage the things.

We should upgrade ourself, all the time are not same... everything is changing, so we should change & explore accordingly, otherwise we are not suitable for that particular thing.

Skill enhancement has to be ongoing. If we don’t keep our ees up then how can we face the future competition and/or exceed them. Soft and hard skills

Como costumo dizer e escrever, nos atuais contextos organizacional desafiadores, é essencial que se criem dinamicas internas relacionadas com aprendizagem e desenvolvimento que permitam "Aprender a Desaprender para voltar a aprender!". Importante trabalhar os processos de learning organizacional a partir das Pessoas e n?o dos processos. Envolver as Pessoas na consciencializa??o das suas próprias lacunas (gaps) e na cria??o de condi??es de aprendizagem e desenvolvimento que possam ser SIGNIFICATIVAS para cada uma destas.

To my mind , by addressing low motivation and engagement through strategies such as aligning work objectives with the organizational vision, involving employees in decision-making, empowering them to take initiative, and fostering a positive work environment, companies can enhance productivity, creativity, and innovation while reducing turnover, absenteeism, and dissatisfaction among employees. Additionally, providing opportunities for professional development and growth, offering regular feedback and recognition, promoting work-life balance, and encouraging open communication can further boost employee morale and overall job satisfaction.

A workplace has more critical situation when talented, skilled employees stop their contributions or innovation or new initiatives due to deprived or low motivation and disengagement. This is an alarming situation. This will surely impact the performance towards company goal and also hinder individuals career growth. So both the organisation or that particular department and individual is going to suffer. It's good to address the areas of concerns earlier than later to accommodate requirements to have a win - win.

Motivation matters whether it's positive or negative. People work hard, deliver results and remain calm if they are fully aware of rewards. Organisations should also engage people in such a manner that they work towards vision.

Although other factors contribute to disrupt good performance the major factor to instigate poor performance is the lack of motivation and engagement. Motivation & engagement are like fuel to your vehicle. You have to keep pumping them at frequent intervals. The moment you stop is the moment the impact hits.

In my experience, the most common slipup we do while conducting the evaluation is we don’t widely emphasize on the period of evaluation but the entire tenure of that employee. Unquestionably, we should appreciate their overall contribution in achieving business goals. However, as it’s a continuing process where everything changes progressively so we must also realize and discuss what value had been added or initiatives have been taken to cater the business needs by that employee’s performance. This will definitely avoid demotivation amongst other employees who feel that the process is biased. Similarly, this KRAs, expectations review and feedback discussion should not just happens once as a process but frequently as a practice

Cultural unfitment of the employee may result in low performance and lead to operational issues, hence hiring process should be effective. Biased appraisals keeps competent employees dissatisfied, which may result in low performance. Compensation review, salary benchmarking, position restructuring is necessary every year to keep employees happy. Competent and skilled employees are assets for organization, reduces operational issues.

Systems that are not user friendly their are frustrating, it can lead to time consuming. We have different generational cohorts which struggle with systems already so organization need to implement a system that is use friendly. Before a system is implemented a proper research need to be done on all generational cohorts.

Errors in data processing, undefined expectations or integrity issues can result in incorrect decisions, compliance violations, or financial losses.

Es importante escuchar al colaborador ya que son los usuarios de los sistemas. Muchas ideas factibles vienen del piso de operación.

Remove the old saying "we've always done it this way". Evaluate the current process to ensure it still meets the demands. New technology is always available that can perhaps improve existing methods. The ineffective processes affect employee moral and engagement. Organizations must listen to their employees. Employees are committed when respected and heard. And they may be right.

Das kontinuierliche Scannen und Analysieren der externen Umgebung und Trends erm?glicht es Unternehmen, frühzeitig auf Bedrohungen und St?rungen zu reagieren. Durch die Bewertung und Priorisierung potenzieller Auswirkungen k?nnen gezielte Notfallpl?ne entwickelt werden, um die Unterbrechung von Gesch?ftsprozessen zu minimieren. Die Kommunikation mit internen und externen Stakeholdern f?rdert die Zusammenarbeit und die effektive Umsetzung von Ma?nahmen. Die überwachung und Anpassung an Ver?nderungen gew?hrleisten die Kontinuit?t und Anpassungsf?higkeit der Organisation.

It also helps to identify single points of failure upfront. The more impactful and bound with company-specific knowledge the roles, the harder they are to fill, and you may not have the right candidate just now. But your future actions, even subconsciously, will be guided by the urge to satisfy this need, whether it be performance conversations, focus of interviews for promotion-oriented roles, or the team restructuring.

If there PMS system in weak in an organization them this will lead to long term impact on the organizational performance. There may be serious threat to Lose of HIPO in the organization. This may also have indirect impact during the any exigency situations also.

I really believe that clear expectations should be “communicated “. So communication between we and supervisor manager and others. We are still siloed and need to continue to open our minds to collaboration as well. Still not there yet. External threats are there always. Fail to plan - plan to fail. Instead of a challenge look at it as an opportunity to be better than the competitors

Operational risk is mainly centered on people, process, system and external factors. These factors need to be addressed through risk auditing in a bid to making sure that systems that are in place stands as a supporting tool in reducing operational risks there by making sure that the systems are up to date. The same goes with the external factors, the need to have an environmental scanning such that we will be able to know our threats and opportunities. Operational risks emanet from within or from outside so it is pivotal to have our internal control systems strong. There is need to have talented personnel, updated systems, consistent, efficient and clear processes as well as a continuous PESTELG analysis.

In addition, we should also consider inadequate training programs, lack of clear policies and procedures , organisational culture issues,etc..

Lack of support and enablement to perform their roles not only lead to performance issues but also diverts an employee’s focus from reaching their full potential. Instead, they end up using valuable bandwidth to navigate organizational challenges.

Primary step is being able to assessing and manage operational risk. There can be some major challenges making it difficult because of some common reasons: - Data required to assess operational risk is not readily available. - Operational complexity is growing and becoming complicated, no one attempting to streamline it - Operational risk evaluation being considered as a low priority activity, such that involved personnel do not pay much heed to it

In every employee engagement survey I have ever participated in, communication has always been one of the top issues organizations need to solve for. It also is one of the keys to success in the other 4 reasons noted in this article. When your teams know what they need to know, and understand what’s important, your level of risk drops. You know what processes and systems you need to address, you can align on the skills and resources needed to do the job, people have a grasp of what the data is telling them, and raises accountability with your leaders. Also, when lines of communication are open you have better alignment with your customers and a chance of addressing issues before they become more serious problems.

Addressing a lack of accountability within a team requires a multifaceted approach, combining leadership, communication, and a commitment to shared goals. Encourage team members to take ownership of their tasks and projects. Utilise coaching skills to empower individuals to overcome challenges independently.