5 minute read
Building a Stronger Framework for Managing Risk
– The 9 Lego Blocks Approach
Every organisation manages risk. Our job is to understand the pieces of that management process, see how they connect together and improve them.
Why understanding the building blocks is vital
The foundation of the effective management of risk lies in understanding the components in each organisation and how they interconnect.
Our role as risk management experts is to dissect and comprehend these components, identify their strengths and weaknesses, and recognise areas for improvement to ensure that risk management processes are not just present, but are functioning optimally.
We find the analogy of Lego blocks quite helpful here.
Lego blocks are made to connect to each other, enabling you to create new and exciting solutions that you never thought possible
– Sometimes Lego blocks can substitute for one another, just as effectively
– You need to use Lego blocks that are consistent. Throwing Duplo, Lego and Technic pieces together doesn’t make the most of any of the parts
– There are instructions, but those instructions are only a guide, and the greatest of all creations are often made by trial and error, experiment and a clear understanding of what you want to achieve.
The Nine Lego Blocks of Managing Risk
We categorise the components of risk management into three key groups, each containing three essential blocks:
Resource Allocation: How resources are strategically used to mitigate risk.
Accountability: Ensuring individuals understand and are held responsible for their role in risk management.
Progress Tracking: Continuously monitoring and adjusting strategies to stay on course.
Preparation: Proactively planning and setting up processes to deal with potential risks.
Response: The ability to react effectively when risks materialise.
Recovery: Strategies to bounce back and learn from risk incidents.
Tools: Providing the right technological and procedural tools to handle risk.
Structure: Establishing an organisational framework that supports risk management.
Approach: Developing a mindset and methodology that embraces proactive risk management
Importantly, we look to understand how well these blocks are connected and, even if the blocks are well suited to each other and the purpose.
You’ll be amazed at how often we find a jumble of Technic pieces loosely connected to some Duplo blocks on a space landscape… and any 8-year-old will tell you that is a recipe for disaster.
Over the coming months, we will share more detail on each of the Lego blocks, and how we have helped design, connect, and, yes, sometimes go back to the big pile of blocks for some new ones, over the years.
To find out more, speak to the Battleground team by following the links below.