Inherent Problems in Risk Management
When a new methodology is introduced, people tend to
refuse change. They feel that change would find difficulty
for others to adapt compared to doing the task they are
used to perform. But there is a need to adjust if the
organization feels that there is a need for change.
Some of the inherent problems in risk management
are as follows:
1. When people within the organization look at risk
being too general. A risk being too general creates
real problem, thus the reasons should be named and
not the result.
2. When people within the organization look at risk
being too detailed. It is difficult for others to
understand when the risk management discussed is
too detail and chances of low rate is expected.
3. When people within the organization fails to create
a risk avoidance plan. It is easy to name a threat
but finding solution such as emergency plan is
difficult. Think of things that should be done
other than regular process. .A contingent plan
should be readily be available.
4. When people within the organization failed to
evaluate the risk management undertaken
especially when change has taken place.
5. When people within the organization do not
see risk management as important. Unless
you believe that the work is something you
have to do, you have the tendency to work
on it. However, if you feel that it is unnecessary
it is most likely that cooperation will not be attained.
6. When people within the organization do not believe
in the process. When people refuse to believe in
the process and resolve the issue, you need to
show other how it works and enjoin others to
participate. Do it as a team.
Confidence is the key to make risk management works
despite the inherent problems encountered. The need to
convince your team to participate is a step towards
accomplishing your objective.