Risk Management

Icebergs, Black Swans, Earth Quakes--unforeseen, earth-shaking events can threaten the life of any organization. Risk abounds.

But it is not just .catastrophes that pose risks for organizations. The failure to understand and properly manage organizational systems increases the risk of poor performance and financial failure as well.

We call our company Ethics By Design because we believe that respect for the legitimate interests of all stakeholders must be a build-in, not an add-on.

To manage the risks of legal and ethical collapse that characterized Enron, WorldCom, and other Greek-like business tragedies, we must be ethical on purpose, not as an afterthought. The organization itself must be ethical.

That doesn't happen merely by adopting a wish list of high-sounding values that are then posted on the organization's website by the public relations department, what Jack Welch rightly calls platitudes. It requires the same kind of painstaking effort in the development of policies, procedures, and practices that characterizes Six Sigma and other tools for systematic quality assurance.

In this section, we share some of the tools and resources that help leaders develop a comprehensive enterprise risk management approach to the operation of their organizations.

Making an organizational commitment to practice the 7 Habits of Trustworthy People & Organizations lays the foundation for reducing the risk of fraud, misconduct, and customer mistrust.

Using the tools and techniques of Strategic Negotiation™ when conducting meetings, interacting with organizational stakeholders, and dealing with customers and suppliers reduces the risk of unnecessary dissension within the organization and of bad deals with outsiders.

Taking a proactive approache to Litigation Risk Management helps organizations reduce the risk of being sued as well as the risk of improperly managing lawsuits when they occur.