Risk Management – Stability in Volatility

October 27, 2020 | By Lemonade Stand

 

Historically, Risk Management has been shadowed under compelling deliverables like cost, schedule, and quality. Thus far, it was considered to be a bottom line approach. There has been an unsatisfactory record of predicting a few extreme events and neglecting other possibilities. Using hindsight as foresight was a norm, but now it is no more a speculative game or replica of past best practices. History is not a mirror to navigate our journey.

There is an increasing number of cases where very experienced teams have not been able to foresee and secure the intended purpose of the project. Random use of statistical analysis, the use of few software’s, or an eye on the past all help, but not always. Such elusive measures put projects in a highly vulnerable situation.

Individual and organizational biases incubate risk through the normalization of deviance, tolerating minor failures, and treating early warnings as a false alarm. Projects can be jeopardized by a combination of small events, supplementing one another in an unanticipated way. By and large, organizations overestimate their ability to influence an event. At times, they are overconfident of their historical processes.

Natural disasters, gig economy, geopolitical and environmental changes, and the emergence of disruptive technologies, are all there to be taken head-on. On top of that, socio-economic randomness is becoming less structured and tractable. As a cumulative effect, the current era of industrial and business transformation has made a major shift in the traditional approach to safeguard against non-favorable situations. Ironically, the challenges are unprecedented and unique.

Risk management is no more a relegated function but is now considered as a life-line for the projects. The organizational culture and capabilities towards risk management in a volatile environment are indicative of the success or dismissal of the project.

Realizing the emerging reality, organizations are striving to enhance their competencies towards a robust and comprehensive risk management framework for encountering surprises. The whirlpool of changes around us and imminent threats are much more challenging and evasive. Anticipating everything that can put a project at risk can not be realistic. It requires a fresh perspective and revalidation of your risk management strategy. What sets organizations apart is the ability and preparedness for encountering risks in a structured way. It’s time to separate from comfort and revitalize your risk management approach.

CARIAN is there to transition you to a collaborative risk management mechanism, converting a challenge into a strength. Leveraging decades of project management expertise in a variety of environments, CARIAN offers you a one-stop solution to all your risk management requirements.

CARIAN adopts a client specific methodology in devising risk management frameworks which are aligned with their particular environment. We are there to help minimize, mitigate, transfer, or eliminate risk to control costs, respond to changing regulations, and assist in doing the right thing.

For more information about CARIAN’s risk management services please contact us at P: 908-205-0450 or E: connect@thecariangroup.com.

Our Methodology

• Evolving mechanism throughout the project life cycle

• Risk management road map

• Implementation & monitoring

• Eliminating paradoxal barriers

• Evaluation of the macro and micro factors in the environment

• Industry specific trends analysis

• Assessing culture, processes, and synergies

• Factoring regulatory, institutional compliance

• Organizational risk appetize & resiliency

• Excluding cognitive behavioral traps

• Disperse organizational silos

• Distinguish between acts of commission and those of omission

• Develop company wide risk perspective and risk oversight structure

• Embedded experts to monitor and moderate the process

• Data analytics, visualization, and simulations

• Software & tools • Probability & impact

• Establishing a scaling up performance platform