Uncertainty is a major problem for us, which is why many organisations reject it and try to avoid it whenever they can. Risk management, therefore, regularly takes precedence over uncertainty management. The problem is that measures designed to manage risks often make matters worse when we encounter uncertainty, INSEAD business school warns in an interesting article.
Risk management in the army
In the French Army, for example, there was a problem of armoured vehicles being slippery on the surface. Soldiers often sprained their ankles when getting in or out of such a vehicle. This risk was mitigated by attaching some wooden slats in order to make certain parts of the vehicles less slippery. However, when these vehicles were deployed in Afghanistan, the slats became deadly dangerous since improvised explosive devices used by the enemy turned them into shrapnel. Many organisations manage their own risks; however, many non-military leaders could learn a lot from how the army manages uncertainty.
Uncertainty is something different
In a military context, uncertainty is crucial; however, it is also relevant for certain corporations: events connected to Fukushima are a clear example. An army not only acknowledges uncertainty but even embraces it. During the Second World War, the Allies decided to invade Sicily regardless of an ongoing storm. Although the paratroopers suffered heavy losses as the storm caused them to land too far to the rear of the enemy, this helped to confuse the defending forces and eventually such confusion was a key factor in the overall success of the invasion.
Cyberattacks in the business world
In companies, cyberattacks are a constant threat; thus there are numerous risk managing procedures aimed to combat this. However, these procedures and set-ups can actually make an unexpected attack more harmful once cyber attackers have successfully hacked into the system. IT teams in fact would need more autonomy, enabling them, in case of need, to fragment the system in order to defend it better and have greater chances of mitigating potential damage. Sometimes then, if the system is penetrated, weak risk-management procedures may, paradoxically, prove to be an advantage.
-jk-