When you drive, and assuming you are a prudent driver, you slow down when the visibility on the road ahead gets worse – because you don’t want to drive faster than you can see.
But when the visibility improves and you can see the road ahead with clarity, you will speed up.
Other factors that will affect how fast you drive include:
In other words, when you have more information you are able to make better decisions on whether it is safe to drive faster. With that information, you can also decide to take an alternate route (to avoid the congestion) or even to take the train (because your brakes need repairs).
The information you need includes data about:
You need both performance and risk information. Some see risk management as being how you identify and address the ‘big’ things (like collapsed bridges) that could derail your plans. But risk management is really about how you address uncertainty about the road ahead (including potholes). As defined in the global risk management standard, risk is the effect of uncertainty on objectives (ISO 31000:2009).
When you are managing risk well, you are increasing the likelihood of a more positive outcome. You:
Some people decide on a destination and route, and commit to an arrival time, with only minimal information. They are willing to ‘take a chance’ that their operational and financial can be relied upon (even if it is early June and the last set of reliable data is from the end of March). But they don’t consider the risks (or uncertainties) in their plans.
It is critical to integrate risk management and an understanding of relevant risks into the setting of performance goals. Otherwise, there is a high likelihood that you will have set unattainable goals, or devised a sub-optimal strategy for achieving them.
Similarly, it is critical to ensure you continue to understand and act on risks as you journey. Integrate risk management into performance management.
Otherwise, you may be driving faster than you can see.
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