Managing risk and building resilient organisations in a riskier world

Abstract

Purpose There has been increasing attention given to the need to bring risk thinking into the field of HRM. The purpose of this paper is to explore the nature of risk in a rapidly changing context, examines the responses being made and indicates the characteristics of resilient and adaptive organisations. Design/methodology/approach The paper presents a categorisation of risk. It uses the volatile, uncertain, complex and ambiguous metaphor to lay out the likely shape of imminent business risks, and the concept of adaptation to present a case that there is scope for effective responses. Findings The paper argues we are at inflexion point that will force businesses to re-examine how they do business in ways that will impact customer expectations, product enhancement, collaborative innovation and ultimately organisational forms. In order to manage and mitigate risk organisations need to understand corporate cultures, operating models and organisational constructs, leadership and governance, as well as the more traditional talent management practices and processes. Practical implications Key to achieving resilience will be a focus on behaviour and culture. These issues have to be brought to the heart of strategy and the business model of every organisation. Organisation cultures need to be developed based on trust and respect and the need to avoid risk blindness. We need to challenge the mindset that people can only be trusted within narrow confines of rules, or limits of authority. Social implications As we continue to develop more heterogeneous employment models – flexi-working, contractors, self-employed consultants, secondees, agency staff, interns and volunteers, outsourcing, partnering and even crowdsourcing – attention needs to be given to the implications for skills, learning and development and the challenges of aligning behaviours. Originality/value The paper brings together a range of imminent business risks to build the case that these risks of course have potentially profound impacts on people management, but that their solution also brings HRM thinking to the heart of strategies, cultures and business models.