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PRODUCTIVITY Execute culture and communication check Revise the hierarchy of risks – think about Build a hierarchy of risks based on dynamic nature and interconnectedness organisational purpose of these risks and loop back through the steps for continual improvement. Develop a shared story of how opportunities and threats could impact a Collect the evidence and results of the Use concept mapping to turn horizon scanning combine and categorise stories into diagrams these as the information feeds back up the Use pattern recognition to look for trends in the diagrams Use horizon scanning at many levels in the organisation to watch for the patterns Identity the key indicators of these developing or the indicators becoming active emerging system patterns Communicate throughout the organisation – the corporate objectives, risks opportunities and the indicators to look for highlighted by Donald Rumsfeld in the similar motivations. However, the majority throughout the company, need to fully 1990s, its origins are with Plato “where of the time choices are made to protect understand the intention of risk policy is the wisdom to know what we do the individual from harm. Yet construction and risk processes. Management practices not know?” organisations face risks, and at many levels. need to be monitored to measure their Organisations need to develop behaviours effectiveness. Each of these actions help an Uncertainty can be considered to protect their business, their subsystems organisation shape a risk culture that suits to be in two parts: and their staff from undesirable outcomes its competitive and industry environment, 1 Described by a probability distribution at each level. Also, they need to ensure and build its resilience to risk. and is not changed by a state of that over-conservatism does not preclude knowledge, eg the probability of heads them from benefiting from future new Conclusions or tails when tossing a coin, rainfall return opportunities. Balancing safeguarding with The main differences between the periods or component failure. being enterprising is a main challenge for approach discussed in this briefing and 2 Arises from incomplete knowledge other risk management methodologies andorganisations. either through lack of detail, ie fuzziness, compliance procedures are: or arises from what is now known, project risks are more dynamic,In this way organisations need to build an ie unknown unknowns and known uncertain and interconnected. Soawareness of their culture around risk. Since unknowns. This is known as epistemic they need to be managed as complexthe economic crisis and several prominent risk or risks from a state of knowledge, processes, not discrete eventsglobal disasters most businesses are looking at ways they can map, understand and or rather lack of it. there is a strong emphasis on uncertaintyshape their risk cultures. So leadership, Risk culture company processes are all being studied understanding risk culture and how thistraining, management practices andmanagement not just threats Individual risk behaviours and cultures shapes people’s behaviour regardingfrom the perspective of risk to develop and Many people behave in ways that they risk is paramount for effective riskinfluence culture and shape an appropriate believe influences their ability to avoid management at any level.risk culture in construction projects. undesirable outcomes. From brushing teeth and eating healthily to changing jobs or New CIRIA guideStakeholders in the organisation and the seeking promotion, daily choices are made projects it operates in need to be consulted Initially aimed at occasional clients as about how behaviour will give protection and understood. Leaders at each level in opposed to professional risk management from adverse outcomes on several fronts the organisation need to be role models experts, CIRIA’s original guidance (Godfrey – physical, financial, psychological etc. in relation to risk behaviours and for et al, 1996) has been adopted and used by Behaviour in construction projects follows shaping the risk culture. Staff members, regular construction clients, contracting 26


evolutionwinter2012
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