#RiskADD: Risk Attention Deficit Disorder

Are your risk management efforts fidgety and so hyperactive and impulsive that it is becoming a distraction in the business?

We all know that the Future of the effective management of risk is Risk Culture Building. In this process the risk management skills of each employee are the keys to success, but most organisations often suffer from what I call #RiskADD, Risk Attention Deficit Disorder

There are generally three types of (Risk) ADD: Firstly, the inattentive type, they are all over the place and cannot seem to get focused or stay focused on a task or activity. Secondly the hyperactive-impulsive type, they are very active and often act without thinking. Lastly; the combined type, the most severe type where they are inattentive, impulsive, and too active.

Here are a few general symptoms of ADD;

·        Easily distracted, always fire-fighting and drifting

·        Not paying attention to basic activities

·        Fails to give close attention to details

·        Making careless mistakes

·        Has trouble keeping attention

·        Ignores a speaker, even when spoken directly to

·        Does not follow instructions

·        Loses focus or is easily sidetracked

·        Trouble getting motivated or finishing projects/ tasks

·        Not following through on commitments, appointments, or responsibilities

Similar behaviours can cause an organisation to have real problems on multiple fronts of business dealings and sadly; at an organisational level, many organisations suffer from the combined type, the most severe type where they have problems with paying attention, hyperactivity, and with controlling their impulses.

Here are a few symptoms of organisational Risk ADD;

·        The Risk report is more important than logical thinking

·        The Risk Framework was developed by an external consultant… 15 years ago

·        The most important decisions are taken by committees

·        There is a belief that standards, regulations and guidelines can “fix” human behaviour

·        The overall focus and messages are only about reducing or mitigating the risk

·        Risk Management is all about compliance and not about value-add

·        Risk Management is seen as a “cost centre”…  part of the cost of doing business

·        “green” is good and everybody must work towards getting the risk profile green

·        “Unlikely” events are just ignored

·        “Speed” is key and “reckless driving” is accepted and often encouraged

·        There is a tendency to avoid the really hard questions

·        There is no clear picture of any risks building up within the system.

 “In Risk Culture you are either a Builder (Adding value and sustainability), a Caretaker (Just making sure nothing bad happens on your watch) or an Undertaker (digging a hole for the company by ignoring risk culture)--- the choice is yours”.

Risk Culture Builder 2022

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