Risk Management or Crisis Management

You know that you need to get better at risk management. Too often, we let risk management become a “nice to have” that we will deal with later.

If something can go wrong, it will go wrong. Lots of things can go wrong. Your job, as the leader of your organization, is to “manage the risks” you face. You get to choose – Risk Management or Crisis Management.

The risks your company faces are unique. A large percentage of your revenues could come from one customer or category of customers. Like Boeing, you have outsourced much of your manufacturing, and quality control is challenging. You own downtown commercial real estate, and employees are not coming back to the offices. Your women’s apparel products must be tuned to current fashion trends. Cyber hackers can shut your computer systems down and grab your customer’s financial information.

If one of these potential “risks” becomes a reality, you are in Crisis Management. You face financial and reputational liabilities and possible safety threats to your employees and customers.

Take risk management seriously. What are the most important liabilities and risks you face? What are you doing to monitor and mitigate these risks? What are the consequences of something going wrong, and what are you doing to prepare for that happening? Who is responsible for managing these specific risks and taking charge when something goes wrong?

Risk Management or Crisis Management is your choice. Risk Management is a complex challenge. Get started by asking and answering these questions.

Ducks on a Fall Pond

While walking in the woods on a fall afternoon outside Boston, I watched mallard ducks paddle across the pond in the magical fall colors.