By training, inclination, and expectancy, risk managers tend to focus on threats because they are expert problem-solvers. Any deficiency in the smooth operation of an organization is a threat and it is the risk manager’s responsibility to treat the threat. This will help get things up and running smoothly once again. Yet, risk is very risky for the organization if the focus is solely on threats.
Risk management views a threat always as being urgent. Opportunities are only important. When things are going well, opportunity-seeking might be the primary risk management approach. Although it never gets too much thought, problem-solving alone would not be sufficient in this uncertain world. Opportunity-seeking remains essential.
Not to worry! ISO 31000 defines risk as the “effects of uncertainty.” These effects consist of both opportunities and threats. We all know that when risk managers are faced with a problem, they often devise a solution that not only solves the problem, but reveals an opportunity. But we also know that in many cases, the opportunity could have been recognized and put into use long before the problem arose.
I have been told that we do not need to spend much time with opportunities because ISO 31010 has a large number of problem-solving tools that will help us effectively eradicate all of those pesky threats. One of the favorite tools of the risk manager is the FMEA. It is basically a risk assessment that focuses on the magnitude of the potential loss and the likelihood of experiencing that loss. Going back to 1949, the U.S. military used MIL-STD-1629 FMEA during the hardware design phase to mitigate product and system risk through design correction. In other words, they used it as an opportunity-finding tool.
You can also use the fishbone diagram for opportunity-finding. You still enter a problem in the box (i.e. the fish head), then you use the People, Machines, Methods, and Measurement to ask questions aimed at not having that problem in the first place. It was my favorite tool when I was involved in helping companies with their pollution prevention efforts.
Another tool comes to mind – Poka-Yoke. Many things can go wrong in a work environment. This tool is a great example of an opportunity-finding tool.
Let’s not forget the maintenance scale of breakdown, preventive and predictive maintenance. It is possible to take a thimble-full of motor oil from a vehicle and analyze it to see if this is the correct time to change the oil. No more changing at a fixed number of miles. Just-in-time maintenance.
Edward De Bono says that reactive thinking, including problem-solving, is what some people do when confronted by a threat. “Projective thinking” involves getting the information on a potential opportunity so that it can be realized.
ISO 31000 gives organizational risk managers a choice. They can attempt to treat the threats or they can exploit opportunity to eliminate threats. Because treating threats may often lead to other threats, I am inclined to be an opportunity seeker. In the next few blogs, we will explore opportunity-seeking and opportunity audits using the works of Edward De Bono.
Bio:
Robert B. Pojasek, Ph.D.
Harvard University & Pojasek & Associates LLC
Risk Management & Organizational Sustainability
rpojasek@sprynet.com
(781) 777-1858 Office
(617) 401-5708 Mobile & Text
www.linkedin.com/in/bobpojasek
Organizational Risk Management and Sustainability:
A Practical Step-by-Step Guide
Now available as an e-book
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Expert as environment, health & safety, and sustainability professional with a record of providing leadership, training and operational support to all levels of the organization; Implements new and revised management systems to drive EHS/sustainability program conformance throughout the operation; Integrates organizational systems of management using the ISO harmonized high-level structure; Provides support for organizations implementing sustainability/risk management practices featured in my book.