Unveiling the Hidden Power of Near Misses in Risk Management.
By Álvaro Trujillo
Introduction:
As risk managers our job is usually a hectic one. On top of the day-to-day tasks (Risk identification, assessments, monitoring, reporting etc.) we are always advocating for and promoting the risk culture of the organization. A big part of the job is crisis management, and it always feels like we are jumping from one crisis to the next. All of this leaves very little time to try and find new ways to stay ahead of risks that are lurking in the shadows.
Of course, risk forecasting is a part of the job, and we all use similar techniques and tools to prepare for what’s coming (industry trends, historical data, process changes, scenario planning etc.). However, we may be leaving a crucial piece of information on the table, Near Misses. A near miss refers to a situation where a potential risk comes dangerously close to causing harm but is ultimately averted. if we as risk managers put systems in place to report these near misses and analyze them thoroughly, we can uncover invaluable insights that traditional risk forecasting methods might miss.
The following three steps may help you weaponize near misses in your organization and use them to your advantage:
1 -Establish a reporting system
Employees should feel comfortable reporting near misses, so make this easy to do and give them the option to do it anonymously. I always make sure to ask for the most relevant information in a standardized format that does not take much time and gives your risk management team the information they need to get to work.
2 - Conduct a thorough analysis
With the reporting system established its time to put your team to work. Use root cause analysis or similar techniques, engage relevant stakeholders, and dig deep down until you uncover any systemic issues or process failures that may have played a role.
3- Implement corrective actions
Use the findings you uncovered in step 2 to develop and implement the corrective actions needed. Make sure that key stakeholders are part of this process as this will empower them to make the changes needed. Make sure to communicate the changes to the organization and monitor the success of these actions.
In conclusion, near misses are a powerful yet often overlooked tool in our arsenal as risk managers. By recognizing the significance of near misses and implementing a structured approach to leverage them effectively, we can transform these close calls into opportunities for enhanced risk identification and mitigation.
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