WBS FORUM RISK MANAGEMENT trick or treat?

1. WBS FORUM RISK MANAGEMENT trick or treat?

2. RISK - effective engagement v. management tick box? implicit in my title is that there 2 critical aspects to risk management 1. a formal, highly structured activity of assessing key areas of risk and identifying formal codified responses === paper exercise 2. an approach where top management and staff are effectively engaged in ongoing risk assessment and risk mitigation === embedded human interaction © Kiki Maurey Consultancy Limited

3. RISK - effective engagement v. management tick box? MIND THE GAP!! Clearly there many organisations in the public, private and charitable/community sectors that effectively do neither. So what does my hypothesis look like? … © Kiki Maurey Consultancy Limited

4. RISK - effective engagement v. management tick box? HIGH staff/cultural engagement ?idealism ?reality formal structural response LOW LOW HIGH © Kiki Maurey Consultancy Limited

5. RISK - effective engagement v. management tick box? some key questions So is there likely to be in reality, a trade off between: • formalised risk auditing activities, and • effective human/staff engagement? • And how much will internal organisational culture, and external imperative(s) act on: • the formal orientation to risk appraisal, and • the implementation of risk management systems? © Kiki Maurey Consultancy Limited

6. RISK - effective engagement v. management tick box? two very different examples • a young and growing SME in the travel/tourism sector, characterised by a down-to-earth response to risk assessment and management: • simple but effect RM plan linked to business plan • venture capital input • whole team engagement and ownership • an admission of vulnerability (market/environmental • realism) © Kiki Maurey Consultancy Limited

7. RISK - effective engagement v. management tick box? two very different examples • an NHS hospital trust (Maidstone & Tunbridge Wells) characterised by high complexity and formalised risk structures • complex high level RM plans • driven by externally imposed targets • impact of unexpected consequences of health policy • poor staff awareness, unclear specialist roles • poor Board intervention and ownership • senior complacency and systemic melt-down © Kiki Maurey Consultancy Limited

8. RISK - effective engagement v. management tick box? some quotes from Warwick Alumni • sometimes risks crop up that you thought you had planned for and then you find new ones emerging • knowledge and systems management is the key, as is engaging staff, and ensuring continuity when people leave • how often do we hear that RM initiatives have failed because of ‘poor implementation’, which means in reality that ‘things fell down because of lack of investment in the human “glue” to hold it all together and this is the bit that is hard to measure’ © Kiki Maurey Consultancy Limited

9. RISK - effective engagement v. management tick box? I N T E R N A L R E S O U R C E E X T E R N A L I T I E S people 'aspired-world‘ objectives 'real-world‘ outcomes planning © Kiki Maurey Consultancy Limited

10. RISK - effective engagement v. management tick box? from "The Poetry of Donald Rumsfeld“ - The Unknown As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say we know there are some things we do not know. But there are also unknown unknowns, The ones we don't know we don't know … There will be some things that people will see. There will be some things that people won't see. … and life goes on. © Kiki Maurey Consultancy Limited

11. RISK - effective engagement v. management tick box? some initial conclusions, ie what’s really important? • external acuity • integrated RM systems • humanised ownership and engagement • widening the risk periscope • extent of ‘psychological safety’ • an ability to act fast and out of character © Kiki Maurey Consultancy Limited

12. WBS Forum - ‘RISK MANAGEMENT. Trick or treat?’ any questions for Mike, Chris and Kiki? © Kiki Maurey Consultancy Limited