Failing to analyze critical unknowns in relation to established goals reduces the chance of achieving those goals, creating uncertainty, passivity, and potentially counterproductive or catastrophic decisions.
Similarly, misunderstanding a goal's risk state can lead to poor decisions. For instance, if a business thinks a goal is in a favorable risk state but it's not, efforts could be misdirected, affecting resource allocation. Accurate situational awareness is crucial; the aviation industry underscores this with stringent design standards to avoid confusion.
In 2018, the Norwegian warship Helge Ingstad collided with a supertanker, partly due to situational misinterpretation, showing the severe impact of flawed assumptions.
Culture
Principles
To enhance situational awareness and foster a common understanding, the following cultural principles are recommended for successful use of the De-Risk Matrix:
Share and Learn: Collaborative knowledge-sharing and teamwork are vital for goal achievement. This involves using the best information available and engaging in continuous learning through open dialogue and group discussions.
Work Systematically and Holistically: To gain the most from the method, take a holistic approach while working systematically with evidence-based risk forecasts to reduce ambiguity.
Avoid Prestige: Communicating a goal's risk state may be challenging, particularly if it reveals issues that could be sensitive to stakeholders. Set aside ego and focus on facts to ensure sound decision-making.
Embrace Subjectivity: Risk is inherently subjective; acknowledge and address different opinions, fostering a culture of inclusivity to encourage open discussions and reduce resistance.
Honesty and Openness: Transparency in communication and a willingness to explore all aspects of risk ensure robust information gathering and decision-making.
Understand Doubt and Resistance: Different backgrounds and experiences lead to varied perceptions of risk, often causing doubt or resistance. Address these feelings constructively to ensure a more cohesive approach to risk management.