There are two skill sets under taught and undervalued among leadership teams: risk assessment and crisis management. A good risk assessment reduces the need for crisis management.
Often compartmentalized to an emergency manager, the fundamental responsibility for assessing and planning for risk rests with board members and leadership teams.
Assessing risks and hazards for health and patient safety, cyber security, facilities, programs, finances , reputation, compliance and integrity should be an annual agenda item for board members and other leadership. What are our priorities? Who could be harmed? Do we understand where our focus would improve the benefits and outcomes of this work? Everything has risk, but the opportunity in a risk assessment is to prioritize what can have meaningful risk reduction.
It’s a great area to use as a test case for a team. What keeps us up at night? How do we prioritize and prepare? In a crisis, do we have all the tools and plans to function? I have written a simulation for teams available on LinkedIn.com/kathrynruscitto. If you have engaged in this work, have your suppliers and subcontractors?
The coronavirus gave many teams the opportunity to experience in real time the lack of pandemic risk assessment and planning in our supply chain. This experience not only heightened our awareness about the vulnerabilities in our organizations but, more importantly, in our partners. We recognized how interdependent we are and the importance of asking those partners if they are also engaging in assessing risk.
Defense contractors and insurers maintain risk plans and have adopted good processes around input for these plans. In addition to the board or leader providing direction, they must engage input from all stakeholders in the organization. Those closest to the process best understand the vulnerabilities.
Kimberly Townsend, President and CEO of Loretto, states that her board created a risk management committee and has found the experience important.
“Our Board is using a board led committee to work with our leadership team to evaluate all aspects of our facilities and operations,” Townsend says.
Consider assessing your areas of risk and planning for the next crisis.
You can reach out to Kathryn Ruscitto on LinkedIn or via email at krusct@gmail.com.
Resources to Use
Websites
Podcasts
- RIMScast: rims.org/resources/rimscast
- Public Risk Management: soundcloud.com/public-risk-mgmt-assoc
- Cyber Risk Management: cyberriskopportunities.com/cyber-risk-resources/cyber-risk-management-podcast/
- Health Professionals Assessing Risk: soundcloud.com/user-37591569