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Risk negotiation - It's hard to be perfect

It is hard to be perfect. Yet, in business, no less is expected. It's a harsh fact that if disaster strikes you are to blame, whether you are or not.

All corporate or industrial activities carry some level of risk. Assessing the risks and implementing an appropriate means to manage any risks which can't be eliminated, are only two of the three vital aspects you need to consider.

Negotiating what level of risk is acceptable to your stakeholders is the critical, yet often overlooked, third aspect of a perfect risk management system.

It's easy to believe that others will agree with your detailed evaluation of what types or levels of risk are reasonable. Yet experience shows that such assumptions are often wrong.

By involving your stakeholders in the process voluntarily and early, before you are forced to by some crisis or controversy, you are far more likely to build a risk control system which is the best it can be.

Like the third leg of a stool, risk negotiation will stabilize and balance your risk assessment and management programs. Don't neglect it until it is too late to be effective.

Quote of note

'I take chances, but I never leave anything to chance.'

Charles Lindbergh

© Kerrie Mullins-Gunst
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