Three Common Risk Failure: How to avoid them Nada

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Three Common Risk Failure: How to avoid them Nada Alharbi, Ms.CPHQ.CPSO.Isqua Fellow, GBLSS, JC certified champion, IHI Certified Performance Improvement Coach Introduction Risk management failures are often depicted as the result of

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Three Common Risk Failure: How to avoid them Nada Alharbi, Ms.CPHQ.CPSO.Isqua Fellow, GBLSS, JC certified champion, IHI Certified Performance Improvement Coach<br>
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Introduction Risk management failures are often depicted as the result of Unfortunate Events, Reckless Behavior or Bad Judgment.
But a deeper analysis shows that many risks are due to systemic problems that could have been addressed with a more proactive and ongoing approach A systemic problem affects the whole of an organization or place, not just some parts of it<br>
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Cost of risk management failures While risk-taking is a fundamental driving force in business and entrepreneurship, the cost of risk management failures is still often underestimated, both externally and internally, including the cost in terms of management time needed to rectify the situation.
Corporate governance should therefore ensure that risks are understood, managed, and, when appropriate, communicated. Following the financial crisis, many companies have started to pay more attention to risk management. This is, however, seldom reflected in changes to formal procedures, except in the financial sector and in companies that have suffered serious risk management failure in the recent past. It appears that most companies consider that risk management should remain the responsibility of line managers !<br>