8 Common Sense Risk Management Practices for Leaders and Directors

Rick Nason and Omer Livvarcin wrote an article on LinkedIn titled COVID-19 Pandemic and 8 Common Sense Risk Management Practices for Leaders and Directors.

« The COVID-19 situation has created both a pandemic and a crisis in public service, for-profit organizations as well as in not-for profit organizations. For many leaders, this may be their first experience in dealing with such a large-scale event with so many yet to be determined consequences. In such a situation it is easy to lose one’s focus on the basics. To prevent this, here are 8 common sense tactics based on our experience in risk management to keep in mind. »

« 3.     Communication Change and especially upheaval is always unnerving. Not knowing only adds to the level of stress. Create clear lines of communication as well as clear expectations of what communications will be coming, and when they will be expected. People will understand if you do not have all the answers, but they might be less forgiving if they are left in the dark. Communicate even if the message is nothing more than “nothing has changed at the moment”. »

« 5.     Try, Learn, Adapt The spread of the COVID-19 virus, and the resulting second order consequences are an example of a complex system emergence, (as opposed to a completely predictable complicated system). Complex systems do not have predictable outcomes, nor do they have controllable outcomes. Don’t look for solutions but instead look to manage the situation. To handle a complex situation, you need to take a “try, learn, adapt” approach.  »

« 6.     Balance long and short-term thinking In a crisis, there is a great temptation to fix the immediate problem. However, it is wise to take a moment to consider the longer-term effects, many of which might be unintended consequences. There is no sense in fixing a short-term issue if it only creates bigger problems for the long term. »

Rick Nason and Omer Livvarcin are co-authors of the book Risk Management for Nonprofit Organizations. Rick Nason is author of several other books including It’s Not Complicated and Rethinking Risk Management.