Strategic Risk Terms
Cause and Effect
Corporate Ladder Bias
Critical Risk Event
Frankenstein Management Syndrome
Strategic Risk Analysis
Strategic Risk Intelligence
Strategic Risk Management
Blind Spot: An area of the visual field that cannot be seen, either by obstruction or failure of judgment. In anatomy: a small area at the back of the eye where the optic nerve is insensitive to light.
Cause and Effect: Recognition of connections between one event (the cause), with another (the effect), where each is dependent on one other and the originating event is known to be responsible for the outcome. See Root Cause
Communication Intelligence: The ability to acquire knowledge using words, sounds, signs, and behaviors; synthesize it into a message; and exchange the information to another with a high degree of success. See Risk Intelligence
Corporate Ladder Bias: A pattern of favoring unreasonable beliefs and behavior that primarily benefits top-level leaders, and avoiding rational information that may contradict or threaten those beliefs.
Foundational Staff: Employees at the lowest levels of an organization including Housekeeping, Maintenance, Food Service, and Direct Patient/Customer Care. Essential roles without which other systems would not run effectively, yet which are also the least appreciated and often lowest paid.
Feedback Loop: A control system in which leaders collect new input (suggestion, appreciation, or complaint), respond to the sender, validate and measure the input’s usefulness, decide which action to take, adjust processes, confirm outcomes, and alert the sender that action was taken. See Cause and Effect
Frankenstein Management Syndrome: A condition of artificial and harmful outcomes resulting from biased decision-making when leaders are disconnected from the needs of employees, customers, and the community.
Innovation: “Applied creativity” through the creation of new products, services, relationships, and approaches. (Credit: Dr. Alan Weiss)
Lessons Learned: A retrospective evaluation of an event to determine root causes and decision-making to avoid risk of future loss. See Post-Mortem Evaluation
Participatory: Showing respect and dignity to all stakeholders, and providing them with the opportunity to be actively involved in generating ideas, designing processes, and ensuring a result that meets their needs.
Policy: A statement of intention that describes what needs to be done (responsibilities), by whom (roles), and the problems it will solve (objectives). A Policy answers the question “Why?” by identifying goals and mission, and “What?” by determining which programs and services to use. Every Policy should flow directly from each of the company’s Strategic Objectives.
Post-Mortem Evaluation: Also known as Lessons Learned, this retrospective review of an event is used to determine root causes by examining:
1. what happened
2. what went well
3. what didn’t go well, and
4. how we can adjust for the future
The resulting insights are used to Avoid (eliminate), Reduce (mitigate), Retain (accept), and/or Transfer (insure) risk.
Procedure: A set of specific steps needed to accomplish a task. It answers “How?” by defining what must be done, step-by-step, to achieve an objective. The best Procedures tie back to a corresponding Policy (statement of intention) and Strategic Objective (goal to achieve the vision and mission). Every Procedure needs to be clear, understandable, and logical.
Process: A series of interrelated actions done to bring about a desired result. They act like a continuous loop that starts with an Input and ends with an Output. Every process starts with an initiating event (written or spoken request, ticket, or starting point), moves through a variety of hand-offs and decisions, and ends in an
outcome when the final goal is achieved.
Risk: The probability of uncertainty resulting in a negative or positive impact (damage, injury, liability, loss) due to internal or external vulnerabilities. See Risk Intelligence
Risk = Likelihood x Effect
Risk Index: Categories used to predict the expected impact and probability of a threat or opportunity, to determine which actions can reduce damage and increase the likelihood of success.
Risk Intelligence: The ability to effectively distinguish which actions must be avoided to prevent loss or harm, and which actions must be taken to gain a competitive advantage. See Strategic Risk Intelligence
Risk Management: The identification, assessment, and prioritization of an organization’s uncertainties in achieving its objectives; and coordinated implementation of safeguards that minimize, monitor, and control the impact of failure and maximize the chance of success.
Strategic Bias: The unconscious partiality toward a particular outcome that occurs because of unrecognized blind spots, insufficient information, and/or cognitive dissonance. See Cognitive Dissonance
Strategic Plan: An organization’s process of determining the overall direction (Strategy), which goals they wish to achieve (Objectives), using which actions and resources (Tactics), and how they will know it was successful (Measures); abbreviated as VMVOM: Vision, Mission, Values, Objectives, and Measures. See VMVOM
Strategic Risk: The vulnerabilities and untapped opportunities that affect an organization’s ability to achieve goals. (Examples: Known vs. Unknown risk, Negative vs. Positive risk, Desirable vs. Undesirable risk, and Integrated vs. Partitioned risk)
Strategic Risk Intelligence: The ability to effectively distinguish vulnerabilities and untapped opportunities in developing an organization’s goals, and translate these insights into superior judgment and practical action. See Communication Intelligence
VMVOM: The 5 basic components of an organization’s Strategic Plan:
Vision: “What does a perfect future look like?”
Mission: “Why do we exist, and who do we serve?”
Values: “What guides our behavior to others?”
Objectives: “Where are we going, and How are we getting there?” and
Measures: “How will we know when we’ve arrived?”
Workflow: An orchestrated sequence of activities where tasks, documents, and/or information are transferred step by step in order to achieve a final outcome; can be depicted in a visual diagram.
Speaking and Training Terms
Keynote Speaking: An event’s highlight message that sets the tone and encapsulates the sponsoring organization’s core message and values.
Webinar: A presentation, workshop or seminar conducted over the Internet that is interactive (attendees are encouraged to participate), multimedia (blends visual, audio, slides, and handout materials); may occur in real-time or previously recorded.
Workshop: A highly interactive method for participants to learn and apply new skills (virtual or in person). Unique demonstrations, hands-on testing “labs,” and skill practice are designed to help participants easily adopt new techniques.
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