In conversations with our clients, we often seek to identify RIO items. That is items of Risk, Issues, and Opportunities. Risk is a situation that involves exposure to danger. In a business context, risk has the potential to impede your goals or mission. For risk items that have a high magnitude of negative impact or probability of occurrence, we apply various techniques to identify mitigation strategies that help organizations monitor and address risk before they become an Issue.
An Issue is a current situation in which there is clearly an impediment to a goal or the mission. Ideally, it should be clear in your organization which person or body is accountable for action to address the issue. When issues are present, we actively seek contributing factors to the issue. We explore internal perspectives with our clients. We also bring outside experience and perspective that is not vested in any pre-existing company mindset. Ultimately we aim to help our clients reach informed and objective decisions.
An Opportunity is a set of circumstances that makes it possible to do something. It’s unfortunate that so much of our attention and energy is spent on Risk and Issues. In this age of disruption, with the maturity of many technical capabilities (e.g., web, mobile, cloud), we can be more capable and capitalize on or create new opportunities like expanding product/services lines or developing new business capabilities that allow us to branch into a new market or industry.
RIO in this Age of Disruption
The evidence is in. There is a new risk profile in this age of disruption. Next week in part 2 of The RIO of Digital Transformation, we will explore the evidence in detail. Use the form below to sign up and receive an email notification for part 2!
To find out more about the new risk profile, check out my earlier blog post – Digital Disruption: A New Risk Profile.