by Michael Arbow MBA
Partner, RSD Solutions Inc.
According to a study conducted at George Washington University by Jaclyn M. Jensen entitled “The Consequences of Completion: How Level of Completion Influences Information Concealment by Decision Makers”, the closer a project is to completion the less likely knowledge of a significant problem is to effect the action of decision makers. In fact even when the test project was barely off the ground with only 10% complete, 37.5% of the test subjects said they would not bring forward negative news. This simple experiment helps support the need for a independent risk management team working directly with C-level or senior management and at the same time being involved, and in contact with, all significant operations of the company.
How independent is your risk team and how are they keeping their finger on the daily corporate pulse? The other issue here is how does your firm and its staff deal with adverse occurrences that could jeopardize a much touted project and how can they not fall into mode of behaviour seen in the above experiment? Finally, just how approachable is the risk team? Does your staff feel that the risk team is working with them or for C-level?
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