Active Risk’s ‘What Makes a Great Risk Manager?’ survey has shown 37% of traditional risk managers are facing major stress. This compares to just 2% of a control group of Sales Professionals (see previous blog posting for more details). What practical steps can organizations take to mitigate this major risk to the success of their risk programs?
Firstly recognize the issue. Traditional Risk Managers – the 60% which have the ‘Technician’ personality profile – are very prone to work-related stress. To mitigate this stress, work hard to remove unrealistic deadlines and avoid actions which will make the Technicians feel that they compromising their high standards. Provide the ‘air cover’ of Executive sponsorship so that the implementation of Risk Management throughout the business is seen as important and hence Risk Managers feel supported.
Underpin the risk management process with an enterprise-wide system. Relying on a spreadsheet solution will make data collection more difficult, more time consuming and make it more labor-intensive to format information for management decision making – all things which could increase stress levels for Risk Managers.
As the risk maturity of the organization evolves, introduce a mix of personality types into the Risk Team to support the different activities needed in the roll-out of Risk Management across the business. Be sure to invest time and resources into making the team work as a cohesive unit as the mix of personalities will not naturally work optimally together.