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Sustainable Risk Management – Organizational Competencies

This post is intended to provide the foundational concepts around organizational sustainable risk management competencies.  This post also recommends adopting sustainable risk management as a core discipline within sustainable change delivery.  This is part of a series that provides the foundation for understanding sustainable change delivery.

“It is far better to grasp the universe as it really is than to persist in delusion, however satisfying and reassuring” – Carl Sagan (1997).

(Quote borrowed from Douglas Hubbard’s The Failure of Risk Management)

Organizational Sustainable Risk Management Competencies

Exhibit 1 highlights some of the components for organizational sustainable risk management competencies.

Organizational Sustainable Risk Management Competencies
Exhibit 1: Risk management competencies and appetite framework (Reuvid, FIGURE 1.2.3 IRM framework for risk appetite, 2012).

Exhibit 1 sets the stage to demonstrate how organizations need to understand that a certain organisational risk management support structure and competence are required.  These components are outlined in exhibit 2. Examples include developing:

  • organizational risk management policy,
  • risk management strategy,
  • risk process guide, and
  • risk and issue registers.

Projects and programmes should also establish various plans to appropriately tie into and employ the organisation’s risk management system(s).

Organizational Sustainable Risk Management Competencies Documentation
Exhibit 2: The relationship between risk management documents in the organizational risk management system (OGC, p. 24 – Figure 3.1, 2012).

This opens the question of “how does one know organizationally how one is doing with risk management”?  Exhibit 3 provides one maturity model that may help provide context.

Organizational Sustainable Risk Management Competencies Maturity Framework
Exhibit 3: Capital project risk management maturity framework (Reuvid, p. 32 – Figure 1.3.1 – Source IRM, 2012).

What this post has intended to do is to demonstrate the number of competencies and management system requirements to properly integrate risk management into the organizational culture.

Conclusion

Access to competent individual sustainable risk managenent practitioners is key to allow the organization to leverage the skills and experience to accept, adopt, and integrate these competencies into the organization.  However, the organization needs the processes and templates to support and aid in standardizing the successful organizational implementation and benefits from sustainable risk management.

Series Objectives

This series is all about raising awareness of sustainable change delivery and the integral elements, disciplines and competencies associated with it. In the graphic below, each of these elements is identified in terms of its use in allowing for sustainability. These elements form the basis of the GPM® Global’s P5™ Standard for Sustainability in Project Management, the GPM® Global Training Programs and the GPM® Global Portfolio, Program and Project Sustainability Model (PSM3™) for organisational assessment.

Sustainable Change Delivery
Exhibit 13: Organizational Sustainable Change Delivery Elements & Disciplines / Competencies

REFERENCES

Please refer to Sustainable Risk Management – 1 Overview.

 

 

Peter Milsom

Peter Milsom is an entrepreneurial advocate for sensible, sustainable change delivery practice. Peter has come to realize that sustainability is the perfect catalyst for Project / Programme / Portfolio / Risk / Value / Business Case and Benefits Management improvement. As an entrepreneurial methodologist Peter's unique value proposition is the vast array of tools and techniques that he brings to every engagement using the most cost effective and efficient methods based on the situation and tailored to meet your needs. This is based on his unique combination of experience and extensive training / certifications in change delivery, value / risk / benefits management business case, and business architecture.

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