Risk Management Approaches

It’s easy as a PM to only focus on the upside. But you'll notice: more experienced PMs actually spend more time on the downside. The reason is simple: the more time you’ve spent in Product Management, the more times you’ve been burned. The team releases “the” feature that was supposed to change everything for the product - and everything remains the same. When you reach this stage, product management becomes less about figuring out what new feature could deliver great value, and more about de-risking the choices you have made to deliver the needed impact. -- To do this systematically, I recommend considering Marty Cagan's classical 4 Risks. 𝟭. 𝗩𝗮𝗹𝘂𝗲 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗦𝗼𝘂𝗹 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 Remember Juicero? They built a $400 Wi-Fi-enabled juicer, only to discover that their value proposition wasn’t compelling. Customers could just as easily squeeze the juice packs with their hands. A hard lesson in value risk. Value Risk asks whether customers care enough to open their wallets or devote their time. It’s the soul of your product. If you can’t be match how much they value their money or time, you’re toast. 𝟮. 𝗨𝘀𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗨𝘀𝗲𝗿’𝘀 𝗟𝗲𝗻𝘀 Usability Risk isn't about if customers find value; it's about whether they can even get to that value. Can they navigate your product without wanting to throw their device out the window? Google Glass failed not because of value but usability. People didn’t want to wear something perceived as geeky, or that invaded privacy. Google Glass was a usability nightmare that never got its day in the sun. 𝟯. 𝗙𝗲𝗮𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗔𝗿𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗣𝗼𝘀𝘀𝗶𝗯𝗹𝗲 Feasibility Risk takes a different angle. It's not about the market or the user; it's about you. Can you and your team actually build what you’ve dreamed up? Theranos promised the moon but couldn't deliver. It claimed its technology could run extensive tests with a single drop of blood. The reality? It was scientifically impossible with their tech. They ignored feasibility risk and paid the price. 𝟰. 𝗩𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗥𝗶𝘀𝗸: 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗗𝗶𝗺𝗲𝗻𝘀𝗶𝗼𝗻𝗮𝗹 𝗖𝗵𝗲𝘀𝘀 𝗚𝗮𝗺𝗲 (Business) Viability Risk is the "grandmaster" of risks. It asks: Does this product make sense within the broader context of your business? Take Kodak for example. They actually invented the digital camera but failed to adapt their business model to this disruptive technology. They held back due to fear it would cannibalize their film business. -- This systematic approach is the best way I have found to help de-risk big launches. How do you like to de-risk?

Tariffs, while unpleasant, are just another challenge that business leaders face in the quest to guarantee the best possible performance of their companies. This weekend's #tariffs on Canada (25%, 10% on oil), Mexico (25%), and China (10%), while surprising to many business planners due to their targets, severity, immediate enforcement, and justifications, are no different. Work the problem: 🧠 Assess the immediate impact on your #costs, #profitability, and #pricing. If you haven't done so previously, engage in direct, honest, and transparent conversations with your teams, suppliers, and customers to develop a strategic response. Roll out the plan as quickly and efficiently as possible. 🗺️ Consider the medium-term and long-term implications of protectionist trade policies on your business and explore a comprehensive list of tariff mitigation strategies, including: •Strategic sourcing •Product exclusion requests •Country of origin adjustments •Value reduction/first sale tactics •Foreign trade zones and bonded warehouses •Special Harmonized Trade Schedule (HTS) provisions •Duty drawbacks 💡 Normalize a robust #risk assessment and planning process for your organization. Continuously evaluate diversification of suppliers and manufacturing locations. Conduct financial modeling of all inputs. Evaluate manufacturing process changes. Explore vertical integration and ways to eliminate intermediaries. Assess technology adoption and real time tracking of your supply chain. Don't be tariff-ied - you've got this! 💪

Is Process Management the Key to Strong Risk and Compliance Management? So many organizations struggle with Risk and Compliance management! A quick scan of the headlines and you'll see another organization getting in trouble with the regulators. I was a consultant in the banking industry for over 25 years and have seen the struggle first hand. In my opinion, the root cause of failure is the lack of a semantic structure (a framework that defines and organizes data in a meaningful way) which exhaustively identifies every process the organization performs to provide consistent business context. According to ISO 31000, risk is defined as the effect of uncertainty on an organization's objectives. How are objectives accomplished? Through Process, of course. Organizations that must manage risk have a risk repository, many times a GRC platform, which stores their risk data such as regulatory obligations, controls, etc. The core challenge is that they typically have a size fit all process taxonomy (such as APQC) for business context which doesn't capture the nuances of their business. The result is that risk data is built on interpretations and assumptions which makes it unreliable, risk reporting for executives is inaccurate, and there is massive confusion for everyone that has a role in risk management. To address this, organizations need to create and maintain an inventory of every process they perform in each organizational unit. This approach leads to Business Integrated Risk Management, where risk management is performed through a common business-oriented lens. The Benefits include: -      Clean risk data by aligning all risk types to a common language of "What" processes the organization performs across all risk types. -      Operational efficiency by defining processes in the 1st line (risk owners), 2nd line (risk oversight), and 3rd line (risk assurance) in a standardized way. -      Enhanced decision-making through accurate risk reporting, allowing stakeholders and the customer they serve to make informed decisions. -      Accurate risk reporting to leadership so they can make accurate risk mitigation decisions. This also sets up organizations to leverage the power of AI through Digital Twins and AI agents to continuously scan the environment and perform automated risk assessment which could eliminate many risk management challenges. This is such a common sense approach, why has this simple solution evaded many organizations? To learn more about this approach, check out my book Digital Transformation Success https://a.co/d/2QSq8qf

Some risks are worth taking, but many are not.   Without proper risk management, unnecessary risks can derail your project's success.   I've learned this the hard way over my years leading complex projects. Here are a few tips from my experience:   Identify all potential risks upfront through brainstorming, risk interviews with stakeholders, and risk analysis techniques.   Don't let risks sneak up on you.   Evaluate each risk for probability and impact.   Prioritize the biggest threats to your project objectives.   Mitigate high-priority risks by avoiding them, controlling them, transferring them, or accepting them with a contingency plan.   Don't ignore them and hope for the best.   Implement your risk response plans. Continuously monitor risks and watch for new ones.   Adjust responses accordingly. Manage risks proactively.   Proper risk management takes time and effort but pays off tremendously in avoiding surprises.   It enables you to deliver projects successfully in a structured way.   Don't gamble with your project's outcome.   Let me know if you need any risk management advice!  

Circa 2012-14, at a FAANG company (can’t pin-point for obvious reason 😉), we once faced a choice that could have cost MILLIONS in downtime… 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐰𝐞 𝐝𝐢𝐝. A critical system update was set to go live. Everything was tested, reviewed, and ready. Until a last-minute test showed an unusual error. 𝐍𝐨𝐰 𝐰𝐞 𝐡𝐚𝐝 𝐭𝐰𝐨 𝐨𝐩𝐭𝐢𝐨𝐧𝐬: ↳ Push ahead and risk an outage that could cost millions per minute. ↳ Roll back and delay a major feature for weeks. 𝐍𝐞𝐢𝐭𝐡𝐞𝐫 𝐟𝐞𝐥𝐭 𝐫𝐢𝐠𝐡𝐭. So we took a smarter approach. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐰𝐞 𝐝𝐢𝐝: ➡️ 1. Instead of an all-or-nothing launch, we released to 0.1% of our traffic first. If things went sideways, we could shut it down in real time. ➡️ 2. Pre-prod tests only catch what they’re designed to catch—but production is unpredictable. We used synthetic traffic to simulate real-user behavior in a controlled environment. ➡️ 3. We didn’t just have one rollback plan — 𝐰𝐞 𝐡𝐚𝐝 𝐭𝐡𝐫𝐞𝐞: App-layer toggle – Immediate rollback for end-user impact. Traffic rerouting – Redirecting requests to stable older versions if needed. DB versioning – Avoiding schema lock-in with backwards-compatible updates. ➡️ 4. We set up live telemetry dashboards tracking error rates, latencies, and key business metrics—so we weren’t reacting blindly. ➡️ 5. Before the rollout, we ran a “what-if” drill: If this update fails, how will it fail? This helped us build mitigation paths before they were needed. 𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐞𝐝? The anomaly we caught in testing never materialized in production. If we had rolled back, we’d have wasted weeks fixing a non-issue. Most teams still launch software with an “all or nothing” mindset. But controlled rollouts, kill switches, and real-time observability can let you ship fast and safe—without breaking everything. How does your team handle high-risk deployments? Would love to hear that 🙂

𝐅𝐢𝐧𝐝𝐢𝐧𝐠 𝐢𝐭 𝐡𝐚𝐫𝐝 𝐭𝐨 𝐦𝐚𝐧𝐚𝐠𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐫𝐢𝐬𝐤 𝐟𝐨𝐫 𝐲𝐨𝐮𝐫 𝐒𝐌𝐄? As someone who's navigated the ups and downs of running and advising small and medium-sized enterprises (SMEs), I know that identifying and managing financial risks is crucial for your business's health and growth. Let's delve into some key strategies: Understand Your Cash Flow: Keep a close eye on your cash flow. Surprisingly, 82% of SME failures are due to poor cash flow management. Regular Financial Audits: Conducting regular audits can help identify potential risks early. Remember, prevention is better than cure. Diversify Revenue Streams: Don't put all your eggs in one basket. Diversification can reduce dependency on a single source of income, which is vital as market trends shift. Stay Informed on Market Trends: Keeping up with market trends is essential. This knowledge can help you anticipate and prepare for potential financial downturns. Invest in Good Insurance: Insurance can be a lifesaver in mitigating unforeseen risks. Consider different types of insurance to cover various aspects of your business. Create a Risk Management Plan: Have a solid plan in place. Only 50% of SMEs have a risk management plan, yet those who do are 28% more likely to experience growth. As we navigate the ever-changing business landscape, remember that managing financial risk is not just about avoiding pitfalls; it's about empowering your business to thrive in uncertainty. Looking forward to your insights and strategies on this! ________________________________ Check out my website and podcast. Link in the comments. #FinancialRiskManagement #SMEGrowth #Facts #BusinessStrategies #EconomicResilience #Entrepreneurship

There ya have it folks... It makes it difficult to bounce back from a mindset that fails to acknowledge the hazards that lead to incident and or injury are just a stones throw away! So what can you do to help? Your first step in protecting workers involves accurately identifying potential hazards in your workplace. You're looking for all the things and situations that could possibly harm your workers. Identifying hazards starts with a workplace inspection. This includes walking around your site: *Observing how work tasks are being performed *Assessing the equipment workers are using, and considering how that equipment is being used *Analyzing the design and layout of the work areas This is a proactive process. Ask yourself, what is it about the activities, processes, or substances used that could injure your workers? Hazards generally arise from the following aspects of work: *The physical work environment *Equipment, materials, and substances used at the workplace *Work tasks and how they are performed *Work design When you work in a place every day, it's easy to overlook some hazards. Here are some tips to help you identify risks in your workplace: *For equipment, check manufacturer instructions or safety data sheets. *Think about long-term health hazards such as high levels of noise. *Consider non-routine operations, such as maintenance, cleaning operations, or changes in production cycles. *For chemicals, check manufacturer instructions or safety data sheets. Remember to think about long-term health hazards such as exposure to harmful substances. *Do an overall review of your incident and worker health records, as well as records of near misses or worker complaints. These can help identify less obvious hazards. People tend to deal with incidents as they occur, but viewing all that has occurred over time can alert you to a pattern and help you identify a hazard that may be systemic. If you're a large employer, our Employer Health and Safety Planning Tool Kit may help. *Consult with your workers about any health and safety issues they've encountered in their work. It is important to keep lines of communication open with your workers, as they can likely identify risks to both workers and production. Survey them anonymously, asking open-ended questions. You may even choose to recognize workers who identify hazards in advance, since this helps business in the long run. *Keep up with the information about hazards and risks relevant to your specific industry or type of work. Consult with industry associations, manufacturers, and suppliers — all of which can provide you with valuable information. Also check out our Industry health and safety data, which shows detailed data for any industry. *Review our resources and information on common risks in specific industries, including common hazards and exposures and tools, equipment, and machinery. Once you have a documented list of hazards, you're ready to begin assessing and controlling the risks

Most project managers discover risks after they've become problems. Elite PMs use AI to spot them weeks earlier. This is how top performers are using AI for risk management: 1. Early warning systems: ↳ Machine Learning (ML) algorithms flag anomalies in project data before they escalate 2. Resource optimization: ↳ AI analyzes allocation patterns to prevent bottlenecks 3. Trend prediction: ↳ Natural Language Processing (NLP) scans stakeholder communications for emerging concerns Organizations implementing these approaches see: ↳ 40% reduction in safety incidents ↳ 25% fewer project delays ↳ 20% cost savings through optimized resources The leadership gap is widening between reactive and proactive project managers. PMs mastering AI risk tools today are becoming the strategic leaders organizations need tomorrow.

🚀 Harnessing AI for Modern Business Risk Intelligence 🌐 Today, businesses encounter risks that can quickly disrupt operations, such as supply chain breakdowns, data breaches, or reputational challenges. Traditional risk management strategies often struggle to keep pace with these threats. This is where AI-powered risk intelligence comes in, offering a transformative solution for modern businesses. A recent blog post highlights how AI transforms risk management by analyzing complex data to provide predictive insights, enabling organizations to make informed decisions about operational and reputational risks. Here are some key takeaways: Operational Risk Intelligence: How AI Helps - Real-time Monitoring & Alerts: AI dashboards track patterns and alert decision-makers before crises occur. - Predictive Supply Chain Analysis: AI forecasts potential disruptions, allowing proactive adjustments. - Workforce & Compliance Risk Management: AI identifies training gaps and behavior trends to reduce errors and breaches. Reputation Management with AI AI doesn’t stop at operations—it also monitors sentiment across news, social media, and blogs to detect negative chatter early. Additionally, it flags ESG (Environmental, Social, and Governance) non-compliance, helping businesses avoid reputational pitfalls tied to unethical practices. Balancing Benefits with Challenges While AI enhances transparency and decision-making, human judgment remains critical. Algorithms alone can’t navigate the ethical complexities of every situation. Combining human expertise with AI precision is the key to success. One example of this hybrid approach is Datasurfr by MitKat, which integrates AI-driven insights with human analysis to deliver critical event monitoring and operational risk reports tailored to business needs. 💡How is your organization leveraging AI to stay ahead of risks? Let’s discuss how this technology can empower businesses to thrive in an unpredictable world! #ArtificialIntelligence #RiskManagement #BusinessResilience #Innovation Sources [1] the-role-of-ai-in-modern-business-risk-intelligence-9929050c1f05 https://lnkd.in/ew_2dNTD

I have invested over 20,000+ hours in Cybersecurity & Networking. Here's my 4-layer security framework: 𝟭. 𝗥𝗶𝘀𝗸 𝗜𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 (𝗪𝗛𝗢/𝗪𝗛𝗔𝗧) Start by identifying what you protect: Your assets, market share, reputation, IP, and other critical elements. 𝟮. 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗣𝗼𝘀𝘁𝘂𝗿𝗲 (𝗛𝗢𝗪 𝗠𝗨𝗖𝗛) Most organizations stumble at this stage: They implement controls without answering "how secure is secure enough?" You must align your security maturity and risk appetite with your business goals. 𝟯. 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝘀 (𝗪𝗛𝗔𝗧 𝗠𝗘𝗔𝗦𝗨𝗥𝗘𝗦) Select controls only after mastering layers 1 & 2. 𝟰. 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝗗𝗼𝗺𝗮𝗶𝗻𝘀 (𝗪𝗛𝗘𝗥𝗘) Map your protection needs across all domains: From network edge to cloud, applications to 3rd parties. Why most security programs fail: ↳ Organizations implement tools without understanding risks ↳ Teams copy frameworks without business context ↳ Leaders focus on compliance over actual security ↳ Companies treat security as an IT problem, not a business enabler The root cause remains consistent: "We want quick wins without investment" Companies that build their security programs backwards account for 90% of security breaches. They rush to implement tools (Layer 3) before understanding their risks (Layer 1) and defining their required security posture (Layer 2). Follow me Daniel Sarica for daily networking & cybersecurity insights.