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The Dimensions of Risk Management - The Risk Manager – Victim or Survivor

By Michael Vincent

26 December, 2006

Risk management and its application within business is at a crossroad.  Is risk management a core business function or one that can be outsourced to a firm with expertise in the area?  Indeed is risk management a function or a series of functions that culminate in a surviving business.

 

Risk managers can decide to be part of this process or withdraw back to the traditional areas of insurance and occupational health and safety.   This month we will look at the "victim cycle" and discuss the steps to professional accountability, These steps will ensure we are seen as a professional and over time we will be valued for our advice and commitment.

 

The Victim Cycle:

 

The cycle consists of below the line and above the line activities.  Understanding how the cycle works enables us to be an influencer for the positive in an organisation and thus nullify the perception of risk as a negative. 

 

Below the line:

  

1. Ignore or deny - put your head in the sand and the problem will go away. This is a classic strategy of a negative person.2. It's not my job - the great statement for avoidance of accountability and for the emergence of chaos.3. Finger pointing - it is better to blame someone else and to let resources be spent on a witch-hunt than to accept responsibility. If you can sheet the blame to someone else then you are safe.4. Confusion & tell me what to do - the classic victim statement, what can I be expected to do, you are the boss, tell me and I will do it. Confusion reigns and the dark days close in on the organisation.5. Cover you arse - here the victim strikes back. This action can cause untold damage to a business as vital information is hidden, mislaid or misdirected with the aim of transferring the responsibility.6. Wait and see - the best weapon of the negative as this aspect can be presented as an overwhelming positive. To wait and see is to be seen as being wise beyond belief because nine times out of ten you will be proved right because of steps 1 to 5.

 

We have all seen the above victims at work within our businesses, as a risk manager we cannot afford to be one of them, as we will be abrogating our obligation to the well being of the firm.

 

Above the line:

  

1. See it - identify the problem or risk, do not avoid it, do not pass it off, see it and embrace it.2. Own it - once you have embraced it, take ownership, analysis it define the problem and work out a solution. This solution may involve you directly or indirectly. 3. Solve it - solve it, this may mean delegating up or down the organisation but it is vital that you monitor the process for results.4. Do it - JUST DO IT.

 

A successful risk manager of the future will live by the motto of "own it" and in order to do that they will have to understand the victim cycle, be able to identify and categorise their working companions and learn how to bring people through the cycle.  This will ensure the elimination of negative attitudes within a workplace.

 

Thus survival of the firm is established.

About the Authors

Director

Australasian Risk Management Unit

Faculty of Business and Economics

Monash University