Risk Management: Moving Beyond Process

• Authors: Art Gemmer
• Venue: Computer
• Year: 1997

Risk management, as it pertains to organizational behavior, is relatively new and still somewhat elusive. Most organizations have only a fuzzy definition of this concept, often confusing it with problem solving or crisis intervention. When Rockwell analyzed risk management behavior, it found that successful risk management involves obtaining functional behavior, not just following a process or having diverse sources of information. Functional behavior is not the absence of dysfunctional behavior. Functional behavior must be coached. This article describes a plan to elicit the behavior "communicate risk more effectively," which Rockwell identified as a common thread among many functional behaviors. Rockwell now experiences fewer surprises and crises, even on the most risky programs. Focusing on behavior helps organizations manage risk as an asset. The author describes Rockwell's next step in its shift beyond process as the implementation of a strategy to manage risks before a program begins. This strategy is intended to reinforce the notion that risk management is an integral part of real work and bring Rockwell closer to the goal of fundamentally changing the way it executes risk management practices.