How well do we handle risk?
It seems risk generally is not being handled as well as it could be. Coming out of research from McKinsey Global Board Survey, April 2015 – 2017, only 6 percent of boards believe that they are effective in managing risk. Only 6 percent? That seems surprisingly low. A common observation is that a reactive approach to risks remains too common, with action taken only after things go wrong.
Some more research, from a Spiceworks study in 2018, 95% of organisations have a disaster recovery plan in place. Which is good. But only 29% test them annually - which is not so good, and 23% never test them at all – which is not good at all.
I was amazed at how low these figures are. Why are they so low? Because people don’t know? I’m sure they do. Because people don’t care? Again, I’m sure they do. I think people are just so busy. When you are fighting crocodiles all day, being reactive, it is hard to do anything more then survive. It is hard to take a step back and consider actions that lead to not being so reactive, to take a pro-active perspective to improve things going forward. That is hard.
As a business owner, or as a manager responsible for running a business, how will your company cope with a major disruption - and on what basis can you answer that? Business Continuity might not be glamorous, but if it keeps you going when things go pear-shaped, it is worth the effort to a) create yourself an effective plan or b) ensure the one you have is up-to-date and effective. The alternative is to wait until things go pear-shaped, then react – as, it seems, most boards do.
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