By Loay Dirar
In today’s business environment risk management is defined as the process of estimating and evaluating numerous risks and developing the best strategies to manage those risks effectively.
Traditionally, most companies have taken the view of risk management as the act of putting out brush fires when they frequently ignite. In other words, their risk management approach has been a reactive one rather than proactive.
When a problem arises, the company would step in and take an action to put out the fire. Today, however, with the increased growth of risks that companies face in a daily basis, they often find themselves in the middle of a burned out forest that can no longer be extinguished by the same old methods.
Firefighting is sometimes essential to handle issues immediately, or as part of a very short sudden period of change. However, it can have serious consequences when it becomes part of the organizational culture on how they deliver their projects.
Reactive management (Firefighting) is also stressful and painful. When you deal with one setback after another, you do not have time to relax. You may be able to live with this pressure, but your team members may not be able to cope normally.
Its time to Make the Switch to Proactive Management:
If you’ve had already suffered from reactive management, follow these steps to switch into a more proactive style:
- Time to Plan: Time is an essential tool that can be used effectively to reduce reactive management. When you create/add more time, you give yourself and your team members more room to plan, and to anticipate problems.
- Fix the Process: Weak business processes can trigger or improve reactive management situations. So, dig in and review all of the processes that affects your team. Also look at people’s working practices and internal cultures, as these may create delays or add complexities.
- Introduce Risk Management: Make the most of your people’s knowledge, experience and expertise by encouraging them to suggest changes and to learn more about the latest risk management practices.