The Role Played By Collective Intelligence In Risk Management

By Charles Wright


The reason why risk managers are employed is so that they can ensure an entity is safe from any adverse occurrences. That is why in this writing the application of collective intelligence in managing risk will be looked at exhaustively. The problem is that some of these managers are not given the right information, tools, and knowledge so that they can deal with some of the potential risks the right way. Most of them will be fed with information regarding something that went wrong in the past other than focusing on what the future holds.

The data you will read here is on the various kinds of intelligence that the people in power need to have to execute their mandate the right way. Their types are many, but the ones that are mostly put in use are three. One of them addresses issues to do with the organization such as the improvement in technology, some of the structures of the company and the culture.

The other type will have to do with financial data which are facts that have to deal with the outside environment. It includes the competition that the entity is facing, the customers and even the people that supply them with various products. As such, you will have to talk to the customers and supplier and any other relevant person to get every detail that is needed.

Another aspect will have to do with the technical bit, and this deals with how operations take place at the firm on a daily basis. All the methods used will be scrutinized to ensure that everything that happens is in line with the various stipulations of the law. If such information is taken to the individuals that are running the entity, then they will be in a better position to make decisions that are informed.

For the application of such intelligence to be a success, everyone at the company must be focused towards achieving the same purpose. The trick used is in placing all their grievances and other suggestions on an online platform where others will come to have a look and then proceed to have an intranet discussion. When the sessions are ongoing, that is when ideas will be brought up on how to handle some problem.

The main advantage of using this approach is the fact that the people who begin the process will not necessarily have to train. It will save any organization a lot of money that they will have used in preparing each of their employees. In fact, the time of implementation will also drastically come down if it is to be compared with other processes.

Whereas most organizations rely on whistle-blowing, it is usually followed by a lot of critical repercussions. That is why open communication is supported because many people will get to tell it the way it is without having to fear. The risk of getting exposed will make many employees avoid practices such as theft and other unethical behaviors.

The approach psychologically works to convince an employee that the management cares about them especially when they are involved in such decision-making processes. The moment you manage to make them feel honored and appreciated for what they do then the goal has been achieved.




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