The 7 traits of effective risk reduction leadership in your organization

I read an article the other day titled “The 7 traits of effective leaders”. I totally agree with the article, but started thinking about how these traits relate to effectively reducing risk within a business. Here are some thoughts on this topic:

1) Make others feel important about their role in risk reduction

If all the directives and ideas about risk reduction come from you, how effective will they really be? The best ideas always come from the people that are closest to the action.

2) Promote a vision about risk reduction

Followers need a clear idea of where you’re leading them and they need to understand why that goal of risk reduction is valuable to them. Your job as a leader is to provide that vision.

3) Follow the Golden Rule

Treat your followers the way you enjoy being treated. An abusive leader attracts few loyal followers. If you are going to get people excited about risk reduction, they need to believe in you as a leader.

4) Admit mistakes, whether related to risk reduction or not

If you have made an error that leads to higher risk or losses for your company, ‘fess up! If people suspect that you’re covering up your own errors, they’ll hide their mistakes, too, and you’ll lack valuable information that can help you reduce more risk in your organization.

5) Criticize others about losses or potential losses only in private

Public praise encourages others to excel. If someone prevents a claim or reduces a claim, praise them to everyone! However, public criticism only embarrasses and alienates everyone, and discourages others from reducing risks within their area.

6) Stay close to the action

You need to be visible to the members of your organization, and they need to know you care about reducing risk within your business. Talk to people, visit other offices and work sites, ask questions, and observe how business is being handled, and what potential losses are prevalent. Often you will gain new insights into your work and find new opportunities for motivating your followers.

7) Make a game of competition with risk reduction

The competitive drive can be a valuable tool if you use it correctly. Set team goals, and reward members who actually perform at reducing risk within the business. Examine your failures, and celebrate your group’s successes.