2 out of the 5 most common mistakes that companies make when it comes to risk management and security

– and how to go about it!

We’re sharing the 5 most common mistakes we encounter in companies. (Follow our LinkedIn page to make sure you don’t miss out)

Here is the second mistake I often see.

# 2: Inadequate risk management

The second mistake I often see in companies is that they have inadequate risk management meaning that they believe that they have got it all covered, but actually that’s far from the truth. What they are missing is the bigger picture.
There is an old joke about surgery: “The operation was successful, but the patient died”, which seems to underpin my point.

Let me give you a few examples:

People may be aware of risk management when it comes to projects – but not the entire lifecycle of the product.
Projects tends to focus on delivering on time and cost instead of delivering a solid product – what happens if the product isn’t good enough?

Many people seem to have trouble relating to risks that are not visible when looking at past event. This is tend to end a bit like when someone refuses to wear the seatbelt because he or she has never had an incident where it came in handy. So apparently it must be a waste of time.

A real life example is the case of Berlin Airport

Berlin Airport was supposed to be Europe’s most modern and futuristic airport and was intended to handle 27 million passengers a year.

The project however ended up being a huge embarrassment and a very costly one for several reasons.
One of the big issues was concerning the fire alarms which failed to activate and there were serious issues with the smoke evacuation channels as well.

The company’s suggestion on how to solve the problem was to hire 800 workers that could alert the airport in case of fire.

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This truly underpins my point. The company was so focused on the delivery and not the actual business of the airport. The solution they provided might work but what would it actually mean for the business? 800 workers aren’t cheap.

How to go about it?

When thinking Risk Management you have to think about the entire lifecycle of each product. Define who the actual stakeholders are – there might be more than you think to begin with.