Demystifying Orbital Risk: Organizational Risk Management in Everyday Life
Organizational risk management (ORM), a concept that may seem daunting, is essential for businesses to maintain stability and longevity. The good news is that understanding and applying this concept can be simple, even for those who are not risk management professionals. In this post, we'll break down organizational risk management into easily digestible pieces and provide three actionable examples that you can use in your everyday life.
1. Be Proactive and Prepared: The Fire Drill Approach
One of the most effective ways to manage organizational risk is by being proactive and prepared. Think of it as the "fire drill" approach. Just like how schools and offices conduct fire drills to practice evacuation procedures, businesses should similarly prepare for potential risks.
Actionable Example: Create a risk management plan that identifies potential threats and establishes appropriate responses.
To make it more digestible for non-professionals, focus on three key areas: people, processes, and technology.
For each area, outline the risks, assess their potential impact, and develop strategies to mitigate them. Ensure that you regularly review and update the plan to maintain its relevance and effectiveness.
2. Foster a Risk-Aware Culture: The Seatbelt Mentality
A risk-aware culture is crucial for effective organizational risk management. Just as we buckle our seatbelts before driving, employees should be mindful of potential risks and engage in behaviors that minimize them.
Actionable Example: Encourage a "seatbelt mentality" within your organization by providing regular training and resources to help employees identify and address risks.
Promote open communication and reward employees for reporting potential threats, even if they're minor. Fostering a sense of responsibility and accountability helps create a proactive risk management environment.
3. Monitor and Learn: The Weather Forecast Model
Risk management, like weather forecasts, is an ongoing process that requires continuous monitoring and adaptation. Staying informed about potential threats and adjusting strategies accordingly enables organizations to better protect themselves and minimize potential damages.
Actionable Example: Establish a risk monitoring system that tracks changes in the organization's environment, industry, and regulations. Options could include subscribing to industry newsletters, attending relevant conferences, or participating in online forums.
Periodically review the information gathered and use it to adjust your risk management plan as needed.
Now put those techniques into play!
Organizational risk management may seem like a complex subject, but it can be easily understood and applied by non-professionals.
By incorporating the fire drill approach, seatbelt mentality, and weather forecast model into your everyday life, you can effectively manage risks and ensure your organization's long-term success.
Keep in mind that being proactive, fostering a risk-aware culture, and continuously monitoring and adapting are the cornerstones of effective risk management. Embrace these principles and watch your organization thrive.