Post by mstjuste on Aug 18, 2021 14:58:42 GMT
1. Is Risk ever acceptable? If so, how much risk is acceptable?
I don’t think risk is acceptable as much as it is inevitable. I believe that risk exists and we have to accept the reality that for every act there is a cost. No risk is acceptable. However, it is important to acknowledge and accept the reality that all risk is possible. Risk is inevitable. Risk Management is foreseeing a potential barrier that is oftentime unexpected or unanticipated. The notion of risk being acceptable defeats the purpose of Risk Management. Risk Management seeks to avert/avoid, transfer or eliminate/mitigate risk altogether. Having a sense of urgency is a vital component to our approach to risk management.
2. How would you assess your program/company’s overall risk appetite?
I believe we have a huge appetite for risk. In Fedcap we have several companies that address specific needs and/or barriers for the clients we serve. We also have to keep in mind we have to be prepared for anything happening not only with regard to our services, but to the foundation on which we promise our services: The Labor Force. If that is not managed with strong recruitment and retention measures, programs are subject to being stretched beyond their capacity. In this area, risk appetite is high and requires a great deal of risk management.
3. Is operating without risk a smart business decision?
I think operating with a plan to mitigate, avoid or transfer risk is tragic comedy or comical tragedy. Two words that don’t gel in the same phrase and we know that in their case nothing ends well. Business without anticipating or prepping for risk is insanity. As a father, one of the first things I learned to do was look at property, insurance, equipment and furniture, designing my homespace in such a way that although accidents are inevitable, they’re “avoidable” and/or “manageable” like carpeting a hardwood floor using the thickest fluffiest layer for falls, having a baby monitor to listen for noise or no noise (both equally important), researching the best car seats and safest positioning. Ensuring that the car I drive has airbags (my days of being “Fast n Furious” without worrying about my safety and risking the safety of others by speeding are behind me). Businesses provide services to people and/or other businesses. Whenever you add people to the mix, there's a risk whether those people are inside or outside your organization. With all of that being said, operating with out a contingency plan for risk is not smart, it’s loco (i.e., that’s crazy!!
4. Given its growth, what are some risks that The Fedcap Group faces? (include reputational, financial, structural etc.)
Reputational
The most prevalent risk is the new mandate for COVID-19 vaccines. Although the move for a safer workplace is absolutely a move in the right direction, mandating staff and potential employees poses a huge risk, especially with it being within only 2-3 months' notice. Although classified by the FDA under Emergency Use Act, FDA itself does not stand by behind the vaccine to mandate it. FDA is simply hands off to organizations who choose to do so. This simple classification leaves room for doubt for those not fully informed about the vaccine and those directly opposed to taking it. In a recent presentation, I spoke about cultures and minority populations' relationship to government mandated efforts historically. Am I opposed to the vaccine? No. Do I question the mandate requiring it, absolutely. Last I checked the Governor mandated being vaccinated and/or TESTED. Have the COVID-19 Pre-Screening protocols failed since we put them in place or have the numbers of covid-19 reports increased/decreased in Fedcap since its implementation? Who records this data? If this process was a failure and requires an immediate change and mandate (and we can account for that in the data somehow), my case rests. But then what process was in place to ensure this was communicated effectively? Fedcap did a great job of educating staff regarding resources but very poor job of informing them of the oncoming mandate/change. In Human Resources on the Talent Acquisition side we’re anticipating a rise in resignations and an increase of candidates declining offers due to the new mandate. The results may vary and be more prevalent in certain areas/companies. A handful will have a smooth transition with staff already vaccinated, ready for the transition.
Financial
For many of the populations we serve, this poses an even greater risk because we may not have enough staff which could compromise contracts. The next consideration is that the populations we serve will now have to be mandated to have it in order to be serviced, or will they not? Financially we rely on funders, donors and grants. Fedcap’s heavy reliance on government grants makes this a great move for those providing the grants, but a potential disaster for the one’s promising deliverables that service populations with barriers that include pre-existing conditions that prevent them from taking the vaccine. Financially, money will have to be spent on the backend for staffing, recruitment, with ongoing operational expenses. Keep in mind that Fedcap loves mergers and acquisitions, what budget do we have to take on new operational expenses and keep us afloat during structural changes?
Structural
There are quite a few C-level and Director or Head Supervisor roles that need to be filled. The absence indicates a staff-run program with limited resources, lack of proper flow of communication to higher ups, and limited resources due to the lack of hierarchy and flow. This in turn will impact staffing, funding, program services, and functionality of programs especially with the increasing number of resignations/turnover in various companies due to new opportunities (competing salaries) or personal choice.
5. How do we engage staff in understanding and actively managing reputational risk?
First, we need an employee handbook with company policy that focuses on practices funded or covered by insurance.
Second, we need a structure that has effective, constant reliable communication from management to staff and vice versa.
Third, we need to have a strong social media presence that is mostly conservative in appearance but aggressive in its outreach and marketing
Finally, we need to have conversations with teams, department heads, about key decisions that may or may not impact the organization. This communication is not to determine your final decision but to ensure that management and higher ups make “INFORMED” decisions with plans to mitigate, avoid or transfer risk.
6. Discuss a specific example of reputational risk that is directly relevant to your program/company?
My answer to this is to see question #4.
Legally, this is a good move on paper. Organizationally, given our mission to eliminate barriers… its one of those grey areas that I look forward to bringing more clarity, insight and objectiveness in. Not everyone will agree with what I shared, but isn’t that part of reputational risk? I’m putting something out there that needs to be examined so that when higher ups look back after seeing a trend that I predicted come to fruition, say “he was the only one that said it.”
That’s part of the risk. One thing to keep in mind is that the fundamental basis for risk management is care and commitment. I am committed to success and care about the outcomes for each individual professional, client worker, customer, participant and community. I care about our mission and in fact c-suite managers have heard my daughter exclaim “one day I want to work at Fedcap” because of the kind of community and reputation I created around my passion for the mission and growth of FEDCAP. If my voice means something, people will pay attention to not just a wave of “yes”-cliques but also the “no” and “maybe”- voices that push for innovation and new ways to view what may appear “obvious” but oftentimes… isn’t really.
I have other examples of risk that may come up in future assignments from personal projects and community outreach and program development. Looking forward to learning and applying the principles from this module. Thank you.
I don’t think risk is acceptable as much as it is inevitable. I believe that risk exists and we have to accept the reality that for every act there is a cost. No risk is acceptable. However, it is important to acknowledge and accept the reality that all risk is possible. Risk is inevitable. Risk Management is foreseeing a potential barrier that is oftentime unexpected or unanticipated. The notion of risk being acceptable defeats the purpose of Risk Management. Risk Management seeks to avert/avoid, transfer or eliminate/mitigate risk altogether. Having a sense of urgency is a vital component to our approach to risk management.
2. How would you assess your program/company’s overall risk appetite?
I believe we have a huge appetite for risk. In Fedcap we have several companies that address specific needs and/or barriers for the clients we serve. We also have to keep in mind we have to be prepared for anything happening not only with regard to our services, but to the foundation on which we promise our services: The Labor Force. If that is not managed with strong recruitment and retention measures, programs are subject to being stretched beyond their capacity. In this area, risk appetite is high and requires a great deal of risk management.
3. Is operating without risk a smart business decision?
I think operating with a plan to mitigate, avoid or transfer risk is tragic comedy or comical tragedy. Two words that don’t gel in the same phrase and we know that in their case nothing ends well. Business without anticipating or prepping for risk is insanity. As a father, one of the first things I learned to do was look at property, insurance, equipment and furniture, designing my homespace in such a way that although accidents are inevitable, they’re “avoidable” and/or “manageable” like carpeting a hardwood floor using the thickest fluffiest layer for falls, having a baby monitor to listen for noise or no noise (both equally important), researching the best car seats and safest positioning. Ensuring that the car I drive has airbags (my days of being “Fast n Furious” without worrying about my safety and risking the safety of others by speeding are behind me). Businesses provide services to people and/or other businesses. Whenever you add people to the mix, there's a risk whether those people are inside or outside your organization. With all of that being said, operating with out a contingency plan for risk is not smart, it’s loco (i.e., that’s crazy!!
4. Given its growth, what are some risks that The Fedcap Group faces? (include reputational, financial, structural etc.)
Reputational
The most prevalent risk is the new mandate for COVID-19 vaccines. Although the move for a safer workplace is absolutely a move in the right direction, mandating staff and potential employees poses a huge risk, especially with it being within only 2-3 months' notice. Although classified by the FDA under Emergency Use Act, FDA itself does not stand by behind the vaccine to mandate it. FDA is simply hands off to organizations who choose to do so. This simple classification leaves room for doubt for those not fully informed about the vaccine and those directly opposed to taking it. In a recent presentation, I spoke about cultures and minority populations' relationship to government mandated efforts historically. Am I opposed to the vaccine? No. Do I question the mandate requiring it, absolutely. Last I checked the Governor mandated being vaccinated and/or TESTED. Have the COVID-19 Pre-Screening protocols failed since we put them in place or have the numbers of covid-19 reports increased/decreased in Fedcap since its implementation? Who records this data? If this process was a failure and requires an immediate change and mandate (and we can account for that in the data somehow), my case rests. But then what process was in place to ensure this was communicated effectively? Fedcap did a great job of educating staff regarding resources but very poor job of informing them of the oncoming mandate/change. In Human Resources on the Talent Acquisition side we’re anticipating a rise in resignations and an increase of candidates declining offers due to the new mandate. The results may vary and be more prevalent in certain areas/companies. A handful will have a smooth transition with staff already vaccinated, ready for the transition.
Financial
For many of the populations we serve, this poses an even greater risk because we may not have enough staff which could compromise contracts. The next consideration is that the populations we serve will now have to be mandated to have it in order to be serviced, or will they not? Financially we rely on funders, donors and grants. Fedcap’s heavy reliance on government grants makes this a great move for those providing the grants, but a potential disaster for the one’s promising deliverables that service populations with barriers that include pre-existing conditions that prevent them from taking the vaccine. Financially, money will have to be spent on the backend for staffing, recruitment, with ongoing operational expenses. Keep in mind that Fedcap loves mergers and acquisitions, what budget do we have to take on new operational expenses and keep us afloat during structural changes?
Structural
There are quite a few C-level and Director or Head Supervisor roles that need to be filled. The absence indicates a staff-run program with limited resources, lack of proper flow of communication to higher ups, and limited resources due to the lack of hierarchy and flow. This in turn will impact staffing, funding, program services, and functionality of programs especially with the increasing number of resignations/turnover in various companies due to new opportunities (competing salaries) or personal choice.
5. How do we engage staff in understanding and actively managing reputational risk?
First, we need an employee handbook with company policy that focuses on practices funded or covered by insurance.
Second, we need a structure that has effective, constant reliable communication from management to staff and vice versa.
Third, we need to have a strong social media presence that is mostly conservative in appearance but aggressive in its outreach and marketing
Finally, we need to have conversations with teams, department heads, about key decisions that may or may not impact the organization. This communication is not to determine your final decision but to ensure that management and higher ups make “INFORMED” decisions with plans to mitigate, avoid or transfer risk.
6. Discuss a specific example of reputational risk that is directly relevant to your program/company?
My answer to this is to see question #4.
Legally, this is a good move on paper. Organizationally, given our mission to eliminate barriers… its one of those grey areas that I look forward to bringing more clarity, insight and objectiveness in. Not everyone will agree with what I shared, but isn’t that part of reputational risk? I’m putting something out there that needs to be examined so that when higher ups look back after seeing a trend that I predicted come to fruition, say “he was the only one that said it.”
That’s part of the risk. One thing to keep in mind is that the fundamental basis for risk management is care and commitment. I am committed to success and care about the outcomes for each individual professional, client worker, customer, participant and community. I care about our mission and in fact c-suite managers have heard my daughter exclaim “one day I want to work at Fedcap” because of the kind of community and reputation I created around my passion for the mission and growth of FEDCAP. If my voice means something, people will pay attention to not just a wave of “yes”-cliques but also the “no” and “maybe”- voices that push for innovation and new ways to view what may appear “obvious” but oftentimes… isn’t really.
I have other examples of risk that may come up in future assignments from personal projects and community outreach and program development. Looking forward to learning and applying the principles from this module. Thank you.
