In everyday life, the better you know something, the easier it is for you to identify it and manage it. The same goes for risks. The recent Deloitte 2019 risk management survey confirms it: the C-suite and Executives teams working in the risk areas are best at identifying risks. On the other side, if they are risk-owners but do not work in the risk areas, they rank risk-identification as the most time-consuming part of risk management.
It comes down to managing the unknown. It goes all the way to understanding the limits of what we can manage and what we need to factor in.
Maintaining healthy boundaries for our energy investment, and any other investment for that matter, is a key leadership competency.
In business, the most interesting examples of wasted energy are not in finance risk management, but in commercial opportunity seizing. Risk and opportunity tend to travel together, but it takes a special set of leadership skills to differentiate and act upon each one.
Next, let us get out of the office and step into the arena, with a couple of horses and discover what their take on risks is, and how they can contribute to our risk leadership development.