RISKS ARE EVERYWHERE:
How will you capitalize on them? BY GAIL STEPHENS, CEO, BC PENSION CORPORATION Gail Stephens
All of us, whatever business we’re in, want our organizations to succeed, but the truth is we will land somewhere on a continuum between success and failure. It’s just a question of degree, and often it is risk management that makes the difference. Risk management is about looking at future situations and deciding in advance how we’ll handle them. It’s not a concept just for major organizations, either. Whether it’s the BC Pension Corporation, a school district or your association of school plant officials, every organization faces risks. Challenges with financial resources, access to critical staff and talented leadership, changes in legislation and other factors all pose risks to our operations. Unfortunately, very few organizations – perhaps only 16 to 20 per cent – have risk management processes integrated into the way they do business. Most see integrated risk manage-
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School Plant Officials Association of B.C. Spring 2008
ment, or IRM, only as a way to manage negative scenarios, mitigate losses or avoid trouble. But such a perspective means these companies, associations and other organizations are missing out on a key concept in determining their own success. Just as every action might have an equal and opposite reaction, the risks we face in our operations are balanced with opportunities. That’s such an important concept that it bears repeating: with risk comes opportunity. The downside to traditional risk management is that organizations can develop a risk-averse culture. Successful managers and leaders know they have to find the potential that’s hidden in business risks so they can create strategic opportunities for the long term. That’s where integrated risk management comes in.
