Part I | Perception: people will believe vs. reality: people just don’t care
People will believe
People just don’t care
While there will be dozens of components to consider as we begin our risk management plan, the most vital is the people behind it. It can also be the most frustrating—people may not exactly be falling over themselves to volunteer for the team. Most people would agree that risk management is important, but there tends to be a lack of enthusiasm when it comes to building and implementation.
5 fresh perspectives: seeing the world differently
Why do we even need a fresh perspective on BCM?
As we grow and learn from our experiences, observations, and interactions with other people, we form frameworks that help us understand the world around us and give us cues as to how to respond or behave. These frameworks give us our own personal blueprint as to how and why things work.
For example, most people have automatically come to understand that when your phone rings, you answer it and say, “Hello?” When someone sneezes, it’s likely you’ll hear someone else say, “Bless you.” If you want to make an omelet, you need to break a few eggs. Et cetera.
The problem is, frameworks are built on individual experience. And sometimes we get it wrong. And when we get it wrong, we’re presented with challenges that are extremely difficult for us to understand and negotiate.
This is the first in a series of e-books that examines the typical ways we’ve found people think about risk management. A fresh perspective is important, as many of the frameworks we’ve built around the process—as well as the product—tend towards the negative. Our goal is to identify how and why we’ve developed these frameworks so we can do something about them.
How soon do you need to communicate after a crisis?
I was working with an executive team on a crisis scenario, when one of the leaders asked a question on crisis communication. He asked, “How soon do we need to communicate? 5 minutes, 10 minutes, 1 hour, 1 day, …?” He was looking for a precise number to evaluate a few past incidents that were on top of mind for everyone in the room. I gave the common answer, but right answer, of “it depends”. He gave a look of dissatisfaction and made a discrediting posture. I went on to share a few basic statistics from Daniel Diermier’s research (author of Reputation Rules) such as “online news stories suggest that the typical window is only eight hours; 20% of all news stories on a given issue are published within an eight-hour period; so forth.” Some time has passed since the exercise. After some thought, I want to provide executives with six (6) crisis characteristics to consider when determining when and how to communicate.
Please join us at RIMS’ annual conference in San Diego, April 10-13, 2016. Lootok’s CEO and President, Sean Murphy, will be speaking at three separate events. The schedule for his sessions is listed below.
You can also get a sneak peak of Sean’s session on “Five Essential Crisis Management Capabilities” live on Twitter through RIMS live tweet chat. Join the conversation by following and using #RIMS16Chat on March 9, 2016 at 2:00pm EST.
What are the signs of an organization at risk for crises?
For some organizations, a crisis is the only catalyst for change.
Sharing a few thoughts on recognizing the signs of an organization at risk for crises. I have not performed a thorough analysis; however, I have a few reoccurring observations. I have observed three (3) common corporate attributes that lead to big corporate crises, which can be used to justify investments into our risk management programs—beyond credit, liquidity, and market risk: