Page 84 - IRMSA Risk Report 2020

WHAT CHANGES DO WE WISH T O SEE IF WE W ANT MORE
POSITIVE OUT C OMES IN M ANA GING RISKS ?

One of the roles of a leader in developing a robust risk culture, is to influence the stories that people circulate about what
is really happening in the organisation. To do this, leaders would be advised to identify what negative stories that need to
be “dampened” and what positive stories need to be “amplified” through carefully designed interventions. It is important
to realise that stories will not change unless people are having experiences different from those that created these. For
example, if we want to evolve to a culture where everyone is risk-aware and willing to help manage it, but a current
dominant narrative in the organisation is that it is career limiting to highlight risks, the experiences that people are having
that is creating that narrative need to change.

FROM THE STORIES GATHERED IN THIS STUDY, WE HAVE IDENTIFIED SEVERAL OF THE STORIES THAT WE
“NEED FEWER OF”, AND OTHERS THAT WE “NEED MORE OF” IN ORDER TO STRENGTHEN THE IMPAC T THAT RISK
MANAGEMENT MAKES IN SOUTH AFRIC A. SOME EXTRAC TS FROM THESE STORIES ARE LISTED BELOW.

… FE WER ST ORIES LIKE THIS … … MORE ST ORIES LIKE THIS …

At group executive level, executives in my own entity
Senior management felt that risk management’s and the regulator were working towards a goal in
opinions and risk assessments were an adverse
statement in respect of management’s ability, everyone’s interest. It was encouraging to me
and they resisted. The risk landscape remained that all concerned took the broader picture into
unfortified and the risks materialised. account.

This was a clear reality check on the importance of
listening to the warning signs reported through
His focus was on increasing efficiency at the various forums and risk reporting dashboards – these
expense of resilience, when engaged on the were previously brushed off as business owners had
risk that this posed, he became angry, saying that other priorities.
he was focusing on the KPIs set for him by the
shareholder.

the leadership “presence” of the General Manager
involved – she attended much of the session… Two
weeks later a major storm impacted… The system
was used successfully to restore supply…
Data were telling the business that something was
wrong, the business chose to ignore my warnings
and… chose to focus all negative energy on me
finally causing me to leave my employ.
“Important to take adequate levels of risk in
support of a well-considered strategy and associated
objectives. Do not become too much internally
focussed. The strategy was changed eventually.”
“Important to take adequate levels of risk in support
The CEO was, as we later found out, captured and his of a well-considered strategy and associated
executive leadership was, with one or two exceptions, objectives. Do not become too much internally
a sycophant-collective. There was no board… The risk focussed. The strategy was changed eventually.
that this concentration of power could lead to a
complete failure in governance was raised but ignored…
could have been avoided if there had been a capable,
confident, and courageous executive team and a well
constituted and governed board of directors.
Where we suspect problems, we should take
decisive action.

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