This is part 2 of our video series on "Difficulties in Engaging Staff in Risk Management". David Tattam provides an example of how you can make risk management real for your staff by using an example from their personal lives.
Hi, I'm David Tattam, Director of Research and Training at the Protecht Group. One of the common problems we all find in risk management is a lack of engagement by the people that should be doing risk management in their businesses, all of their staff.
One of the reasons that occurs is, a lack of understanding of risk and risk management by those staff, and what we don't understand, we tend to shy away from. One of the solutions to overcoming that lack of understanding is to make risk management real.
A common way we find that works, is to relate risk management to people's personal lives. Let's have a look at that.
Firstly, think about our personal lives. One of our risks is health risk, medical risk. What do we do to manage that? Well, hopefully we go to our doctor once a year, and have a medical checkup. In risk management we call that a risk control self assessment.
Now, there's a long time between visits to the doctor. What if something goes wrong in the interim? I have a FitBit that monitors things such as heart rate, sleep patterns and if they change, it tells me something might not be right. I investigate, and hopefully fix up the problem early.
Thirdly, we also might have an incident. If we have an incident, a medical incident, hopefully we have things such as first aid, such as a defibrillator. Something that could help us get through that incident so it doesn't have a big impact on our lives.
Fourthly, also, as you may, have some medication that looks after some of the risks that I have. I wanna make sure that, that medication is working effectively. This medication is our controls in business, and we call this checking of those as controls assurance, to make sure they are working.
And lastly, we also, through our risk management and through our analyzing our health, might find problems that we have. We call these issues in business, and for each issue we need an action. This gives us our issue and action management.
Please check out our other videos and our blogs, where we'll delve a little bit deeper into relating risk management to our personal and business lives. Thank you.
Author of 'A Short Guide to Operational Risk', David Tattam is an internationally recognised specialist in all facets of risk management, particularly at the enterprise level. His career includes many years working with PwC, as well as two Australian banks. His achievements include the creation of the Middle Office (Risk Management Department) for The Industrial Bank of Japan in Australia and the complete implementation of all Australian operations, systems, procedures and controls for Westdeutsche Landesbank (WestLB).