Focusing only on reducing the ‘danger’ reduces the potential for upside. And the upside of risk is opportunity, innovation and new possibilities.
On the other hand, chasing opportunity without an honest understanding of the downside and managing for it, can increase the danger of bad things happening, and leave organisations poorly prepared when they do.
For Gavriel Schneider, CEO of Risk 2 Solutions group of companies, this is where many Australian organisations find themselves stuck. Australian businesses, he believes, have a tendency to focus on avoiding possible negative outcomes. “In response to this, we have become process and procedure-obsessed and paper-driven in the effort to avoid loss or damage.”
Business is missing opportunities, he says. “The challenge sits around what can we gain by being open to opportunities and embracing the risk press as a value-add back to business.”