Post by John Uliano on Aug 18, 2021 16:24:20 GMT
Is risk ever acceptable? If so, how much risk is acceptable?
I believe some level of risk is inherent in all decisions, so accordingly, risk is clearly acceptable. Also, by not acknowledging even minor risks, it becomes easy to ignore them, which can then result in an at first manageable situation ballooning into a larger problem. I feel risk becomes less acceptable when it is ignored and begins to disrupt program operations and outcomes.
How would you assess your program/company’s overall risk appetite?
I feel that Fedcap Inc. has a healthy appetite related to risk and this is embodied by the international expansion of programming and services the company has undertook over the past several years. Risks were abundant as the company moved overseas, combining with partners in the UK and launching a significant Canadian contract, although the strategy of doing so aligned with The Fedcap Group’s financial growth plan, while remaining devoted to the company’s mission and the bold goals.
Is operating without risk a smart business decision?
Minimizing risk is a smart business decision, although I am unsure if any business is completely devoid of risk. I think it would be naïve of a business owner or operator to think that they are without risk. I think that at best risks can be reduced through a strong risk management plan, as our reading assignments/video, suggest. Additionally, as we discussed in an earlier module, operating with innovation in mind requires a certain degree of risk, due to the uncertainty of new ideas, products, and services, so for a company to not have any risk would suggest that they are not considering innovation as important to their growth.
Given its growth, what are some risks that The Fedcap Group faces? (Include reputational, financial, structural etc.)
In some cases, I feel that The Fedcap Group operates as if it’s a small “mom and pop” not-for-profit and not a multi-national organization approaching half a billion dollars in revenue. Internally, it often seems that specific departments are not grown and expanded at a rate that can support a large organization, e.g., Human Resources, IT, Talent Acquisition. This can eventually increase risk to the organization’s operations as these departments become less effective as they are not scaled appropriately. Additionally, this can have an impact on reputational risk, as employees have the potential to become less satisfied in their roles.
How do we engage staff in understanding and actively managing reputational risk?
I think it starts by effectively communicating to all staff how their roles and responsibilities impact the perception of their company/department. By linking these to their company’s or the larger organization’s reputation, staff increase their ownership of how their actions can impact reputational risk. Evaluating risk in staff members’ day to day activities through a Risk Register or other risk management process can support a broader understanding of how all staff contribute to reputational risk.
Discuss a specific example of reputational risk that is directly relevant to your program/company?
When Fedcap Inc. expanded to Canada, there was negative media regarding the province’s decision to award a contract to a US-based company. Advocates for individuals living with disabilities and the press focused on some negative findings regarding a payroll issue (or something to that effect) and used that suggest that Fedcap’s work with individuals with barriers to employment was in some way corrupted. When implementing programming, Fedcap Inc. had to be extremely mindful of the reputation that was put forth in the media, and I feel that we tried to counter that in our implementation efforts through direct communication and transparency in everything from our hiring and recruitment to our engagement with service providers. While COVID partially impacted his situation, our company president, Grant Collins, was in Canada full-time for well over a year and a half (only coming back across the border recently I believe) forming partnerships and strengthening our reputation in the service area, which I think is a concrete and relevant example of how important it is to ensure reputational risk is managed effectively.
I believe some level of risk is inherent in all decisions, so accordingly, risk is clearly acceptable. Also, by not acknowledging even minor risks, it becomes easy to ignore them, which can then result in an at first manageable situation ballooning into a larger problem. I feel risk becomes less acceptable when it is ignored and begins to disrupt program operations and outcomes.
How would you assess your program/company’s overall risk appetite?
I feel that Fedcap Inc. has a healthy appetite related to risk and this is embodied by the international expansion of programming and services the company has undertook over the past several years. Risks were abundant as the company moved overseas, combining with partners in the UK and launching a significant Canadian contract, although the strategy of doing so aligned with The Fedcap Group’s financial growth plan, while remaining devoted to the company’s mission and the bold goals.
Is operating without risk a smart business decision?
Minimizing risk is a smart business decision, although I am unsure if any business is completely devoid of risk. I think it would be naïve of a business owner or operator to think that they are without risk. I think that at best risks can be reduced through a strong risk management plan, as our reading assignments/video, suggest. Additionally, as we discussed in an earlier module, operating with innovation in mind requires a certain degree of risk, due to the uncertainty of new ideas, products, and services, so for a company to not have any risk would suggest that they are not considering innovation as important to their growth.
Given its growth, what are some risks that The Fedcap Group faces? (Include reputational, financial, structural etc.)
In some cases, I feel that The Fedcap Group operates as if it’s a small “mom and pop” not-for-profit and not a multi-national organization approaching half a billion dollars in revenue. Internally, it often seems that specific departments are not grown and expanded at a rate that can support a large organization, e.g., Human Resources, IT, Talent Acquisition. This can eventually increase risk to the organization’s operations as these departments become less effective as they are not scaled appropriately. Additionally, this can have an impact on reputational risk, as employees have the potential to become less satisfied in their roles.
How do we engage staff in understanding and actively managing reputational risk?
I think it starts by effectively communicating to all staff how their roles and responsibilities impact the perception of their company/department. By linking these to their company’s or the larger organization’s reputation, staff increase their ownership of how their actions can impact reputational risk. Evaluating risk in staff members’ day to day activities through a Risk Register or other risk management process can support a broader understanding of how all staff contribute to reputational risk.
Discuss a specific example of reputational risk that is directly relevant to your program/company?
When Fedcap Inc. expanded to Canada, there was negative media regarding the province’s decision to award a contract to a US-based company. Advocates for individuals living with disabilities and the press focused on some negative findings regarding a payroll issue (or something to that effect) and used that suggest that Fedcap’s work with individuals with barriers to employment was in some way corrupted. When implementing programming, Fedcap Inc. had to be extremely mindful of the reputation that was put forth in the media, and I feel that we tried to counter that in our implementation efforts through direct communication and transparency in everything from our hiring and recruitment to our engagement with service providers. While COVID partially impacted his situation, our company president, Grant Collins, was in Canada full-time for well over a year and a half (only coming back across the border recently I believe) forming partnerships and strengthening our reputation in the service area, which I think is a concrete and relevant example of how important it is to ensure reputational risk is managed effectively.
