Applying critical thinking to risk management (and business opportunities discovery)

Business risk abounds and will abound even more in the future. The growing challenges and uncertainties is here to stay. So besides focusing on business growth, there need to be an equal if not more focus on risk management.

But risk management today need to be upgraded in terms of its approach. Risk management need more critical thinking capabilities because the world that we are living in, is much more complicated with added confusion coming from what is real and fake.?

Along the way, effective risk management that comes with critical thinking application will also bring forth the discovery of new opportunities.

?

In applying critical thinking to business risk management, you need to approach it in a systematic way. Thinking through this process will enable you to stay focus and attentive on what is most important and relevant.

?

1.???? Identify the problem clearly

Always start with a clear problem statement. If you cannot articulate or write down clearly what is the problem that poses risk to your business, you are still not clear of what is the problem. On the contrary just because you cannot articulate it clearly, it does not mean that your business does not have any problems - Every business has its own problem. Just that you are still not clear about it.

?

2.??? Define the scope of the problem

Hopefully by now you passed through the stage of knowing your problem statement. Here you need to size up the boundary or scope of the business problem. If you do not go through this stage properly, you will soon find that your problem scope is too wide, beyond what is necessary and you will be too overwhelmed to manage it, wasting and over-using your resources.

?

3.??? Deliberate on any assumptions used

When defining the scope, it is normal that you will include certain assumptions that certain events will or will not happen. Sometimes there can be too many assumptions included that it drowns what is reasonably realistic. So, before you include any assumption into your risk management, deliberate it sufficiently especially with those who are closest to the problem.??

?

4.??? Think about what is the ideal

It is good to have a view regarding what could be the ideal outcome from resolving this business problem. This is important because in some ways it gives you a sense of direction, motivation and drive towards what you are working on. It also provides you a sense of check and balance should things not moving towards that ideal direction. ?

?

5.???? Do not overlook the weaknesses

As much as you have an ideal expectation on what can be achieved, do not overlook any weaknesses that can result from people, things and matters which can seriously derail your objective. These are limitations that you should give adequate attention and address it upfront as soon as feasible.

?

6.??? Build a strong justification case

Thereafter build a strong justification case of the problem statement and what can be done to bring forth a resolution. This will incorporate all aspects aforesaid. Now at this stage it is very probable that you will also discover new opportunities that were never thought of. This could be a better process, a more efficient way, a new talent, a business opportunity or simply something that no longer need to be done.

?

7.???? Think about what can be done better

Once you discover say, a better process, a more efficient way, a new talent needed or a business opportunity, this itself leads to what can be done better or something even worth a new investment. You can then start to explore it further.

?

8.??? Keep implementing the better version

As you discover something new and better for your business, just implement it to take your business to the next level. By now, you will realize that rather than merely just solving a business problem but by also applying critical thinking approach it can lead you to better opportunities.

??

Dealing with problems is what businesses will face but managing it with a strategic critical thinking will bring forth a higher value than merely solving a business problem.