The biggest obstacle to effective risk management
A very quick post today.
In an interview, Fiona Davidge, head of the British Standards Institute and a 15-year risk manager, said this – with which I wholeheartedly agree.
She was asked: “What are the biggest obstacles for integrating risk management in all organizational activities for managers in the UK?”
The biggest obstacle is that risk management is often seen as a separate activity which needs specialist risk professionals in order to succeed. Many organizations feel they cannot afford to do this. In fact most organizations do not have, and will never have, a risk professional working for them. We need to encourage organizations to see that everyone in the business owns and manages risk and in acknowledging that fact integrate risk management into their normal business management processes. We already do this in many ways – such as delegated authority for payment sign off, procurement rules and project risk assessments. That these activities are at the heart of risk management for an organization needs to be understood and promoted; it needs to be viewed from that paradigm. Risk understanding and management needs to sit at the centre of all decision making.