The Risk Manager
Every decision carries with it a need to evaluate the potential risk of success or failure. Such decisions range from the apparently trivial to highly strategic and important. However trivial or strategic these decisions may be at face level, they should all evaluate the risk associated with being right or wrong, and to do this there are two key criteria that are often used. The first is the likelihood or frequency criterion which asks us to evaluate how often possible risks (whatever they may be) present themselves. The second criterion is the consequences of our decision (or what is also sometimes called the potential severity of impact). This is simply to ask how serious would it be (on a person, the team or the whole organization) if things were to go wrong. In combination, the calculation of likelihood and consequences gives us a “decision risk profile” and it is this that should ideally guide a manager’s thinking.
- Big picture thinking ability
- Cost consciousness
- Critical thinking ability
- Decision-making ability
- Forward thinking skills
- Safety focus
Ingredients should be added, blended well and left to mature over time:
- Big picture thinking ability: This refers to a manager’s capacity to link specific events, tasks and actions in a wider perspective or pattern.
- Cost consciousness: This refers to a manager’s capacity to remain constantly aware of the need to ultimately generate more income than expenses in all their efforts.
- Critical thinking ability: This refers to a manager’s capacity to think rigorously and broadly about issues, challenges or problems and to optimize the route to finding potential solutions that work.
- Decision-making ability: This refers to a manager’s ability to maintain focus on the results or goals that matter or are important and make timely and clear decisions that help one’s self and others move forward positively.
- Forward thinking skills: This refers to a manager’s capacity to think about the consequences of current actions and behavior and to prepare accordingly.
- Safety focus: This refers to a manager’s ability to appreciate the dangers and potential problems that may exist in a workplace on a day-to-day basis and seek to minimize their impact.
“Readiness Recipes” is a new article series exploring 26 different kinds of managers A-Z and the key ingredients that each needs for success. Stay tuned for more recipes and thanks for reading!