Common Risk Mitigation Failures and How to address them

On 13th May 2019, we woke up to the news of the mine eruption in Soma, Turkey, which claimed about 301 lives. However, this was just one of the severe disasters in the mining niche; most industries out there, from petroleum to manufacturing, have had their own shares of disasters. When such disasters happen, you need to have a good risk mitigation plan to handle them, but this is where most enterprises fail. 

In this post, we will look at the common risk mitigation failures in industries and how to address them. 

Incapable Leadership

If you have poor leadership in an organization, it might become your crisis management efforts’ biggest obstacle. Often, such leaders put a lot of focus on other areas leaving out crisis management and end up getting caught off guard when threats strike. To mitigate this challenge, here is what you need to do: 

  • Only contract people with experience in handling disasters
  • The directors of the company should insist that crisis management be given focus in their companies. 
  • Have the leadership review disaster preparedness after some time to ensure it is updated and workable.  

Being Unable to Implement Enterprise Risk Management 

Notably, having a good risk management plan is one thing, and implementing it is a different one altogether. Implementing your crisis management can become challenging, especially if you do not have the right people. Even when you have a good plan, the problem can also be experienced by entrusting it to people with poor experience.

The best way to avoid the problem in your plant or organization is running real simulations. For example, you can create drills that help your team conceptualize how they should act in the event of such threats. If you are in manufacturing, this preparedness will be very critical because it could be the defining line between failure and success. 

Ignoring Organization Culture in Your Organization 

Your organization culture plays a great role in determining the success that you can achieve with your risk prevention plan and crisis management efforts. 

The culture is especially important in risk identification and prevention remembered Iskander Makhmudov. So, if the culture is unhealthy, the chances are that a big proportion of your risk management plan will not be implemented well. 

If you have a company, its success depends on many factors, and having a good risk management plan is one of them. For the plan to be successful, you should avoid the above common failures that have huge potential even to kill your enterprise.

Jonathan Rice

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