Risk management

This experimental page is part of a new research project. Praxis Framework and Team Animation are collaborating to develop different perspectives on P3M frameworks to match personal communication styles. For more information about personal styles click here and to take part in our research click here.

 

This page provides an insight into how people with four different communication styles will perceive the principles and application of risk management. To get the benefit of this page you first need to understand your own preferred style (or colour) and, ideally, those of your colleagues. You can complete a short diagnostic here to discover your style.

For a pdf of an individual colour, click on a link below:

The attributes of the four colour types explain what they may typically propose or want to see in the corresponding sections of a management plan. Specifically in this case, the structure of the risk management plan is used to explain how different people address different aspects of risk management. The terms ‘propose’ and ‘want to see’ indicate that someone may be involved in writing the plan or simply acting upon its contents.

As people are rarely ‘pure High Green’ or ‘pure High Yellow’ the attributes are only typical of each type. The lists of attributes are not intended to be exhaustive, they are indications of different attitudes that you need to take into account when working in a diverse team. More generic attributes of each colour can be found here.

See how the different styles typically respond to the different elements of risk management simply scroll down the page or click on the different sections of a management plan in the diagram below.

 

Goals Policy Identify Assess Plan responses Implement responses

 

Goals

The goals of risk management are to:

  • ensure that levels of overall risk within a project, programme or portfolio are compatible with organisational objectives;
  • ensure that individual risks and responses are identified;
  • minimise the impact of threats to objectives;
  • optimise opportunities within the scope of work.

When implementing these goals the different colours would focus on different areas.

A High Green would typically propose or want to see:

  • an explanation of what risk management is aiming to achieve
  • a consistent and systematic approach to identifying, assessing and responding to risks
  • adequate information about risks that facilitates decision making
  • a focus on quantitative measures

A High Green would typically be perceived as:

  • risk averse or risk neutral due to natural caution, the need for facts and detailed consideration and processing of risks
  • having a low risk appetite due to focus on compliance
  • supportive of methodical and proven techniques

A High Blue would typically propose or want to see:

  • key individuals engaged in the procedure and given the opportunity to input
  • clearly identified roles for managing risk
  • a focus on qualitative measures in particular the impact of risk on people
  • a cautious approach to risk

A High Green would typically be perceived as:

  • risk averse and wishing to have clarity over the impact on them and those they have a relationship with
  • assessing probability and impact at a higher level than others 
  • having a low appetite for risk as they are typically cautious in their outlook to life
  • keen to follow defined processes in full

A High Red would typically propose or want to see:

  • action taken quickly to minimise risk and maximise opportunity
  • assessment of resources to achieve this is made in a dispassionate way with a tangible demonstration of value
  • a focus on quantitative measures
  • tangible evidence of the benefit of risk management
  • a concise and efficient procedure
  • that they have maximum freedom to take action as they believe necessary

A High Red would typically be perceived as:

  • risk neutral or seeking as long as they have the freedom to take action as they see fit
  • having a high appetite for risk as long as the benefits are clear and they have freedom to act
  • dismissive of what they may perceive as unnecessary process
  • dismissive of behaviours that they perceive as hindering action and results

A High Yellow would typically propose or want to see:

  • interaction within the team and with stakeholders as part of identifying risks
  • a clear message that risk management improves team effectiveness and efficiency
  • a focus on qualitative measures
  • a broad discussion of potential risks identifying more unusual risks
  • short term responsibilities for managing risks are identified

A High Yellow would typically be perceived as:

  • risk seeking and without the need for rigorous process or quantitative information around which decisions are made
  • assessing probability and impact in less detail than others
  • having a high appetite for risk due to a natural optimism

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Procedure

When defining or implementing the steps in the risk management procedure the different colours would focus on different areas.

Identify

A High Green would typically propose or want to see:

  • methodical, fact based tools and techniques for identifying risks
  • communication and consideration of lessons learned from previous projects

A High Blue would typically propose or want to see:

  • involvement of people through one-to-one discussions and workshops
  • risks that are people centric
  • communication with people from previous projects to obtain lessons learned, focusing on the impact on people

A High Red would typically propose or want to see:

  • quantitative rather than qualitative output from tools and techniques that facilitates speedy decision making
  • a minimum amount of assessment necessary to allow decisions to be made and actions agreed
  • flexible approaches which act as guidance with the final decision being made by those leading

A High Yellow would typically propose or want to see:

  • the involvement of team members and stakeholders through discussion and workshops
  • a broad range of risks being identified which can then be pared down
  • communication with people from previous projects to obtain lessons learned
  • equal focus on opportunities and threats

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Assess

A High Green would typically propose or want to see:

  • quantitative tools and techniques for assessing risks
  • sufficient information to allow informed decisions to be made
  • details of the way the tools should be used e.g. defined scales of probability

A High Blue would typically propose or want to see:

  • the use of qualitative techniques for assessing risks
  • comprehensive processes for the assessment of risks clearly identifying responsibilities
  • a cautious approach being taken to the definition of risks

A High Red would typically propose or want to see:

  • quantitative rather than qualitative output from tools and techniques that allow speedy decision making
  • the minimum amount of assessment necessary to allow decisions to be made and actions agreed
  • flexible approaches which are there to act as guidance with the final decision being made by those leading

A High Yellow would typically propose or want to see:

  • the definition of risks with a minimal level of formality or resources being deployed to achieve this
  • the adoption and use of qualitative techniques for assessing risks
  • flexible processes for the assessment of risks

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Plan responses

A High Green would typically propose or want to see:

  • a methodical and informed approach when determining responses
  • detailed planning with plenty of data
  • inclusion of contingency
  • conservative estimates
  • a focus on threats rather than opportunities

A High Blue would typically propose or want to see:

  • considered decision making regarding the allocation of responsibilities and actions for each risk
  • a high level of contingency to ensure that unforeseen risks can be dealt with

A High Red would typically propose or want to see:

  • options and probable outcomes being identified quickly (and ideally leaders being allowed to make decisions)
  • low levels of contingency together with a high level of monitoring and control

A High Yellow would typically propose or want to see:

  • quick decision making regarding the allocation of responsibilities and actions for each risk
  • low levels of contingency
  • a means of incentivising people to reduce risk

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Implement responses

A High Green would typically propose or want to see:

  • clear and comprehensive responsibilities agreed with each person
  • a structured process for monitoring risk, which may require a lot of information from those responsible

A High Blue would typically propose or want to see:

  • fair allocation of responsibilities
  • a clear process for monitoring of response actions

A High Red would typically propose or want to see:

  • clear and formally recorded accountabilities
  • formally recorded constraints and decision making procedures
  • timely monitoring and control to ensure that people are being held to account

A High Yellow would typically propose or want to see:

  • actions followed up by those responsible
  • a flexible and simple means of monitoring actions and risks

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Thanks to Donnie MacNicol of Team Animation for providing this page.

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Risk management

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