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The Leader's Guide to Managing Risk

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The Leader's Guide to Managing Risk

A Proven Method to Build Resilience and Reliability

HarperCollins Leadership,

15 min read
8 take-aways
Audio & text

What's inside?

Learn how how to avoid bad outcomes in business and everyday life.

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Editorial Rating

9

Qualities

  • Comprehensive
  • Applicable
  • Eye Opening

Recommendation

K. Scott Griffith, risk management consultant and former American Airlines chief safety officer, explains that the world is complicated and laden with risk. From the discovery of fire to today’s advanced digital technologies, humans have used their minds to survive and thrive despite risk. Everyone loves success and hopes it will continue, but people sometimes make mistakes or misunderstand their situations, and everything goes awry. People and companies make bad choices, and accidents happen, sometimes with dire consequences. However, you and your company can mitigate and manage your risk, build collaborative risk management into your culture, and even prevent some of those consequences if you understand the underlying causes of bad outcomes.

Summary

Sustained success over time is the only way to demonstrate reliability.

If you strive to be reliable, doing something just once in a while is insufficient – even when you do it well. You might be lucky or do good work in limited circumstances; however, if you wish for others to see you as reliable, you must perform your work regularly with excellence over time. This matters to your shareholders and consumers. For instance, if you need a heart surgeon, you want one with a proven record. When you’re flying home for the holidays, you want to know your pilot is reliable.

Reliability isn’t perfection. Mistakes and accidents happen. Unexpected and unpredictable circumstances arise. Even performing solidly over time doesn’t guarantee future flawless performance. The risk of failure doesn’t magically disappear. Whether you are analyzing everyday tasks, creating presentations, flying jets, or performing surgery, the risk of failure is always present.

Some risk issues are “socio-technical,” meaning that certain human activities are risky because they require interacting with complicated systems, such as vehicles, computer hardware...

About the Author

K. Scott Griffith, founder of SG Collaborative Solutions, helped create the Aviation Safety Action Programs. A retired airline pilot and former American Airlines chief safety officer, he received the Flight Safety Foundation’s Florez Award for contributions to aviation safety and – three times – the Federal Aviation Administration’s Good Friend Award. A frequent public speaker, Griffith pioneered the development of predictive risk management strategies, including socio-technical probabilistic risk assessment (STPRA) and Reliability Management Systems (RMS).  

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    L. A. 1 week ago
    El estudio de riesgos corporativos no solo resguarda el presupuesto de una compañía, sino que también asegura su viabilidad económica a largo plazo. Al otorgar un valor proyectado a las amenazas potenciales y valorar su potencial efecto, las organizaciones pueden prever y prepararse para afrontar cualquier contingencia que pueda presentarse. Esto previene costos extra no previstos que podrían desestabilizar el presupuesto y poner en riesgo la rentabilidad de la empresa.

    Además, al reconocer y minimizar de manera proactiva los riesgos, las compañías pueden maximizar la utilización de sus recursos económicos y prevenir la pérdida de capital por circunstancias inesperadas. En conclusión, el estudio de riesgos corporativos no solo resguarda el presupuesto presente de la compañía, sino que también favorece su expansión sostenida y su triunfo a largo plazo. Es importa que cada colaborar vele por la integridad de los recursos, la eficiencia en su puesto de trabajo y ser parte de la solución de cada detalle que permita la optimización del riesgo de nuestra empresa y que permita evitar riesgos innecesarios.