The Risk of Paying too much Attention to your Experience
The Drift into Failure idea from the Safety Engineers is quite valuable.
One way that DIF occurs is when an organization listens too well to the feedback that they get from their safety system.
That is right, too much attention. In the case of a remote risk, the feedback that you will get most days, most weeks, most months is NOTHING HAPPENS.
That is the feedback you are likely to get if you have a good loss prevention system or if you have none.
This ties to the DIF idea because organizations are always under pressure to do more with less. To streamline and reduce costs.
So what happens? In Safety and Risk Management, someone studies the risks of a situations and designs a risk mitigation system that reduces the frequency or severity of problem situations to an acceptable level.
Then, at some future time, the company management looks to reduce costs and/or staff. This particular risk mitigation system looks like a prime candidate. The company is spending time and money and there has never been a problem. Doubtless, the same “nothing” could be achieved with less. So the budget is cut, a position is elimated and they get by with less mitigation.
Then time pass and they collect the feedback, the experience with the reduced risk mitigation process. And the experience tells them that they still have no problems. The budget cutters are vindicated. Things seem to be just fine with a less costly program.
If the risk here is highly remote, then this process might happen several times.
Which may eventually result in a very bad situation if the remote adverse event finally happens. The company will be inadequately unprepared. And no one made a clear decision to dilute the defense to an ineffective level. They just kept making small decisions and eventually they drifted into failure.
And each step was validated by their experience.Explore posts in the same categories: Business, Enterprise Risk Management, Execution Risk, People Risk comment below, or link to this permanent URL from your own site.