Why are we still using risk management tools (e.g. ISO 31010) to focus only on the threats to an organization? I was pleasantly surprised when reading the description of the “Structured “What-if” Technique” where I found the following strength and limitations information: “SWIFT can be used to identify opportunities for improvement of processes and systems and generally can be used to identify actions that lead to and enhance their probabilities of success.”
SWIFT was originally developed as a simple version of the HAZOP tool. According to ISO 31010, it is a systematic, team-based study using ‘prompt’ words or phrases by a facilitator within a workshop to stimulate participants to identify risks. While SWIFT is commonly applied to systems, plant items, and procedures. In particular, SWIFT is used to examine the consequences of changes and the risks that are altered or created. I have always liked using SWIFT in the characterization of the organization’s external context.
Establishing the External Context
Establishing the external context involves becoming familiar with the overall environment within which the organization the organization operates. This usually involves the use of the PESTLE tool (i.e. political, economic, social, technological, legal, and environmental influences) to help determine the key drivers and trends that having impact on the objectives of the organization. The sense making of this information is usually facilitated by the understanding of the perceptions and values of the external stakeholders. Understanding the context is step for helping any organization manage the “effects of uncertainty” (risk).
Using SWIFT for Determining the External Context
A team of people familiar with the external context conducts interviews and studies documents and other information provided by the interviewees. The PESTLE tool establishes the ‘influences’ for the team to use to determine the ‘factors’ in the external operating environment. A facilitator uses this information to prepare a prompt list of words or phrases that will be used to characterize within each of the influences and factors situations that present opportunities and threats for the organization. In many cases, the threats may create opportunities and vice versa.
At a SWIFT workshop, the intent of the facilitator is to stimulate the context team into exploring potential scenarios surrounding the opportunities and threats using potential scenarios, their causes and consequence. A list of opportunities and threats are created for each influence/factor combination. The workshop considers how these opportunities create uncertainty that can affect the ability of the organization to meet its objectives. There may be a need to collect additional information about the external operating environment to complete this effort.
PESTLE-SWIFT Evaluation
The opportunities and threats are assigned a likelihood and consequence using a risk assessment method. The consequence will have a negative value for the threats and a positive number for the opportunities. A bifurcated risk map is created with the opportunities on the right and the threats on the left. Normally the most favorable opportunities are compared to the highest scoring threats. To exploit the opportunities, they are evaluated for the ability to offset some of the highest scored threats. This exercise is an effective way to lower the impact of the effects of uncertainty on the organization. The use of the SWIFT tool helps improve the capture of the opportunities and threats that are of the greatest concern to the organization. The workshop team can meet as a ‘look-out’ panel to consider any new factors that are occurring in the external operating environment that need to be addressed. In this way, the organization can remain focused on addressing the opportunities to be on the upside of risk when considering the organization’s objectives.
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
http://tiny.cc/xz3fhy
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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.