As risk managers we know the feeling all too well: we come into a new organization, excited to introduce the awesomeness that’s risk management, and we run straight into a wall of resistance. We ask ourselves: why would anybody not want to engage us to make better, risk informed decisions? Why would anybody not want to be more resilient, and better prepared to chase after those strategic goals while navigating a world that has become increasingly challenging and unpredictable? When trying to build a culture of risk managers, it is important to first understand why people sometimes have such a strong reaction to risk management:
One reason people shy away from risk management (and many other things for that matter) is because it means embracing change. We're creatures of habit, comfortable in our routines, and risk management demands that we challenge the status quo and try new things. Stepping out of our comfort zones? Yeah, that's not always our favorite thing to do. Plus, there's this nagging fear that we might mess up and end up regretting our decisions. So, it's no wonder we hesitate to dive into risk management headfirst.
Another reason is that many have the wrong idea about risk management. We tend to see it as this defensive shield against all things bad, instead of an opportunity for growth and innovation. Maybe we had previous experiences with risk managers or auditors (because let’s face it, we all get thrown into the same bucket), and they were all about the downside risk. We carry those experiences with us and because we all suffer from confirmation bias, we only remember that one negative incident.
And lastly, people are afraid that a risk assessment is just a fancy way of doing their performance review. The fear of being judged and the reluctance to be transparent in assessments stem from the worry that it may have a negative impact on our professional reputation. Instead of recognizing the risk assessment as a valuable support tool, we perceive it as a personal scorecard, adding to the intimidation factor.
Understanding what makes people shy away from embracing risk management is a big first step to creating better strategies when building that culture of risk managers. Stay tuned for my next blog post where I will discuss some strategies to overcome these fears!
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