Risk Culture Conversations – Episode 4 – Training

Risk Culture Conversations episode 4 is now available and focuses on a critical aspect of Risk Culture – Training!

3 Lines of Defence…

For years we have been hearing of the importance of the 3 lines of defence. We are even hearing of the 4 and 5 lines of defence these days as organisations look to put more and more emphasis on defence. As Horst Simon, Risk Culture Builders, puts it, Risk Management relies too much on defence when in fact it should be about attacking. No team wins when only relying on defence.

Lets take the concept of 3 lines of defence however. Assuming it works, and I do believe it can work, then one of the critical success factors has to be the 1st line. The 2nd line and 3rd line provide no defence at all… by the time they pick things up its too late anyway. Organisations therefore, have to rely on the 1st line of defence, The employees of the organisation. If the first line of defence is so critical, why do so many organisations neglect them?

Employees, if they are to manage risk effectively and quickly, need a certain level of freedom to make decisions. Too often however, organisations have a lack of trust when it comes to employees, and levels of authority, are both too restrictive and cumbersome. Additionally, organisations often fail to offer a process or tools that enable employees to properly manage, escalate or communicate risks.

One of the bigger issues however is the fact that whilst the 1st line of defence is supposed to protect the organisation, they haven’t been given the training on how to do it. Risk Management training, company values and ethics training and all other reputation, behaviour and risk training are vital for a 1st line of defence to be effective. Its not just protection either. Risk training needs to focus on the opportunities.

In the latest episode of Risk Culture Conversations we discussed three key aspects of training.

Internal vs External training – 0.00 – 7.20 minutes in video.

I have been on both sides of an organisation. As a risk manager as well as a consultant providing consulting and training services to the client. As a risk manager, it was clear that there was a need for a mixture of both internal and external training for a variety of reasons discussed in this video.

We discuss the benefits and negatives of both internal training run by the risk team on a frequent basis as well as external training from the likes of Baldwin Global’s “Baldwin Academy” or Kontrapro Risk Management. We also look at the certification route that the Institute of Risk Management (IRM), who provide certificates and further education in the field can bring to the table. And we don’t shy away from the fact that there are negatives to external training.

Practical Solutions to ensuring participation and engagement during training – 7.20 – 12.20 minutes in the video 

Whilst having training is a major part of building a positive risk culture, very often, training either focuses on the wrong areas or isn’t engaging enough. In order to ensure participants get the most of the training, we discuss practical solutions to ensuring that they are active and learning throughout the training such as using real life examples of risk management rather than just stating the usual “Risk is good” “Risk management meets objectives” etc. This again includes positives and negatives of various approaches such as bringing leadership into the training vs having them separated as well as gasification of training.

How to ensure training is effective – 12.20 – 20.29 minutes in the video

Once you have participation and engagement, you need to ensure that the training is effective and can be translated and used in the workplace. This covers aspects such as using a variety of techniques in order to get the most from the session and to ensure information is retained. From watching films to having assignments following the training, we discussed a variety of ideas to improve training.

 

Risk – Monte Carlo simulations for improved decision making? – The LEGO case

Baldwin Global published a report a while back which focused on Lego, the company, which is recognized globally for its colourful bricks and the creative inspiration it instils in children around the world, is also a pioneer in the use of Monte Carlo simulations for helping its board of directors establish the enterprise’s risk appetite and tolerance. Whilst being a few years old, the case study is both an enjoyable and interesting read as well as still being relevant.
Apparently, the ‘nerdy’ methodology was in fact much easier to apply and understand than most executives and directors seem to think.

The case study is available freely  Here

More importantly, corporations should consider using a method that had proved to consistently improve decision-making in complex situations. Hopefully the report on the LEGO Group will encourage the boards and executive teams of other companies to ask for a better decision-making and risk-management tool than the ones most of their organizations currently use.

The case study is available freely Here

A Unique look at Risk Culture – Case Study

Baldwin Global published a fascinating and highly original case study in risk culture and risk-taking featuring Benjamin Mee and his Dartmoor Zoological Park (DZP). Risk management is not about eliminating all risks. It is about mastering the downside and being able to take the positive risks necessary for an organization to succeed and bring value to its clients and, ultimately, to people. Optimisation of decision making and risk.

Mr. Mee and the DZP presented an excellent case study in that regard. They were an interesting example of an organization led by a fully invested risk-taker focusing on opportunities, but who also knows what his key risks are and how to manage them.

The case study is available freely Here

It impressed the Institute of Risk Management enough to include a shorter version of the case study in their Risk Culture Guidance. (https://www.theirm.org/media/1605851/Risk-Culture-Resources-for-Practitioners.pdf)

The Dartmoor Zoological Park (DZP), set in 33 acres of beautiful woodland with stunning views of the surrounding countryside, is a family-owned zoo with a fantastic collection of animals including the widest variety of big cats in the south west of England. Its story is quite unique. A few years ago, on the brink of being closed, the zoo was purchased by the Mee family and following major refurbishment work, reopened in July 2007. That story was captured in Benjamin Mee’s book We Bought a Zoo, which has been published in over 20 countries. His book was later adapted and turned into the Hollywood movie We Bought a Zoo, directed by Cameron Crowe and starring Matt Damon and Scarlett Johansson. For more information on the award-winning DZP, please visit their website at:

http://www.dartmoorzoo.org.

The case study is available freely Here

Risk Culture Conversations – Episode 3 – Practical Solutions to Building Engagement…

I recently met up with Vibeke Myras of KontraPro Risk Management to have an exchange of ideas and discussion about Risk Culture. We ended up filming it and enjoying the conversation so much that we decided to share it as a 7 part mini series.

This is part 3 of the miniseries – Practical solutions to building engagement….

It covers real examples of how organisation’s might be able to engage departments and people to actually using risk management as an effective business tool and not just a tick box exercise in order to meet audit requirements. It covers competencies of managers and directors as well as reward focused approaches to risk management.

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Watch it here :

Risk Culture Conversations – Episode 2 – Risks in Different Cultures and Context…

I recently met up with Vibeke Myras of KontraPro Risk Management to have an exchange of ideas and discussion about Risk Culture. We ended up filming it and enjoying the conversation so much that we decided to share it as a 7 part mini series.

This is part 2 of the miniseries – Risk in different Cultures and Context….

It covers aspects such as why risk management needs to be flexible and adaptable to organisations dependent on their industry as well as regional and organisational cultures. It also covers the importance of ensuring common language and terminology across risk management.

Enjoy the mini series on the Risk Guide youtube Channel

 

IRAQ – Camps & Facilities – Part 2

Working area and Facilities

The working area really depends on what kind of work the company is involved with and whether they are running the facility or building it (Operating vs Project).

Operating

Generally, where a company is operating, there will be a facility of some sort (Power plant, Oil treatment facility, Water treatment facility, Gas Treatment Plant, well pads etc.) with workshops and office space in close proximity. Often there will be a canteen on site too so that staff don’t need to travel back to camp for lunch.

Other facilities that may be on site are firestations, chemical labs, storage areas and parking areas. Additionally all sites have muster points for emergency purposes.

The office spaces tend to have all the equipment found in regular offices such as docking stations, integrated telephone and network systems, server rooms, kitchens, toilets, meeting rooms, video conference rooms and training rooms.

From a security point of view, all facilities have security walls and usually sit within a security perimeter within the wider area (the site) that will secure all the company’s facilities. Permits are needed to enter the site that need to be approved by government ministries.

Project

Projects work much the same as the operating side of things apart from the fact that they don’t have any completed facilities. They start with accommodation for the employees along with necessary security requirements to secure the site. Thereafter they start the construction work.

Construction has to be undertaken in close partnership with local authorities in order to ensure a secure construction area. This is usually only in the very early stages of the project however and if they already have completed facilities they will most likely be working within the secured perimeter.

The bigger difficulties occur with pipeline projects which will extend outside security perimeter’s and will often occur in remote locations or near local villages. The way in which companies often overcome these security issues is to hire local workers until the site has been secured or work with local police authorities during pipeline projects.

Transportation to facilities

Transportation to facilities from camp occurs in a variety of ways.

Individual armoured vehicles

This option is usually used for less secure areas or less accessible areas. They are also used for work areas that require employees to do a lot of travelling to various other faclities. An example might be a project team working on Well Pads. The Well Pads tend to be spread out around the site meaning that the vehicles will take the staff from camp to offices and then be on standby in the event that they need to travel to some of the well pads.

Shuttle bus

Once a site has been established and is well secured there will often be a shuttle bus service that operates within the site, much like a regular bus service would. The shuttle bus will have a regular route travelling between camps and facilities and picking up and dropping off anyone who needs to be transported. The main difference between a regular bus service that you might be used to is that the bus on site is an armoured bus.

Large heavy armoured vehicle

Often, if there are a large number of people needing transported to a facility, they will arrange a much larger heavy armoured vehicle to transport the group from camp to site.

IRAQ – Camps & Facilities – Part 1

Having covered the arrival to site and how the shift works I wanted to describe what being here is actually like. I wanted to try to paint a picture of what day to day life at site looks like. In order to achieve this I intend to describe the accommodation as well as the camp itself, with all the facilites, the working location and transportation to it.

Accomodation

Firstly, I want to point out that all accommodation, office space and camps tend to be built as some form of permanent portacabins.

Accomodation on site really depends on the camp you are assigned to, which also depends on the company you are working for. Companies will either build their own accommodation, rent pre-existing accommodation or rent a shared accommodation with other companies. Either way the only real difference is the size of accommodation, size of the camp, facilities and quality of food.

Everyone has their own room (again different sizes depending on different camps) which comprises of :

En-suite bathroom with shower – Often in the camps when you arrive on shift you will be provided with a toothbrush, toothpaste, soap, shower gel and shampoo.

Fridge – Camps will provide some or all of the following on a daily basis: still and sparkling water, milk, crisps, chocolate, tea biscuits, tea bags, coffee and soft drinks

TV & Satellite

Desk – with docking station and internet access and usually with WIFI connectibility.

bed

Cupboards space

kettle

The rooms are cleaned on a daily basis in order to ensure all insects and snakes (many of which are dangerous) are not attracted and bedsheets changed on a regular basis. Laundry service is also available and costs nothing.

Camp

Companies try hard to make living conditions as pleasant as possible. The camps I have visited have had walkpaths, greenery and in some cases even Landscaped gardens. As much as they try however, the tall walls and security
towers are difficult to ignore.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Considering there is nothing to do after work and you are confined to the camp, its important that there are facilities available to pass the time. Facilities at camps vary greatly, although, generally they all have :

• A canteen
  • Food is served as a buffet style with a variety of meat and vegetable dishes as well as desserts. Often canteens will have theme nights such as Italian, Mexican etc.
  • Breakfast, also a buffet, can include fresh orange juices, cereals, eggs, beans, bacon, sausages and pastries.
• Gathering/meeting area
• Pool table or table tennis table
• Gym

Some camps go as far as having :

• Swimming pool
• Football pitch
• Supermarket
• Coffee shop
• Volleyball pitch
• Basketball court
• Tennis court

 

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IRAQ -Shift Work – Part 3 (Risk Manager)

Shorter Shifts

One of the great benefits of having shorter shifts and being exposed to a variety of back to backs during the shift is that the Risk Manager (RM) will have many more sources of information for identifying and assessing risks at their disposal. Instead of talking to 5 or 6 technicians or engineers in a facility, the RM will often meet an additional 3-4 back to backs (depending on their shift patterns) who may have different experience or different perspectives on the risk being identified. This gives the RM much more confidence when reporting risks to top management.

There are challenges however. Firstly, they need to ensure complete consistency in approach with their own back to back. Risk management is still a relatively new concept and whilst there are standards that can be followed, the success of a risk management program relies heavily on the RM and their personality and ideas. They need to consider aspects such as the culture of the organization, the processes in place, the organizational structure as well as top management personalities. This makes it unlikely that any two RMs would approach it in the same way. If a RM and their back to back cannot agree fully, or are sending out different/confusing messages, then there is a chance that risk management could face some early setbacks. Setbacks at the start of risk management implementation or in a company new to risk management can often lead to never gaining traction.

Assuming full agreement, they then need to double up their training and face time to ensure they meet all managers and their back to backs each shift. Whilst this can be managed, it does eat into the time a RM has in an already shorter shift on site.

It gets trickier for a RM when back to back’s who they have met, disagree on risks. In a situation like that it can be difficult for the RM to establish which information to use, especially when it is a major disagreement. Obviously seeking further advice from other experts can help, but it becomes much more problematic when manager (Risk Owners) back to backs disagree.

 

 

 

 

 

 

 

Longer Shifts

For a RM, looking to implement risk management, having a long shift with no back to back allows the RM freedom to implement their own vision without making compromises which could positively contribute to successful implementation. Risk management is all about establishing a framework, an approach, building relationships and encouraging a risk culture built around the risk framework. In order to achieve this, its vital for the RM to get their face in front of people, reiterate key risk messages and promote the culture in a consistent manner. A long shift allows for this.

Other critical factors are building reliable risk registers and reporting risk. Having long shifts with no back to back allows the RM to receive consistent data from the risk owners (whether they be engineers, facility managers or others) with no risk of conflicting information that they might have from a back to back. This allows for consistent reporting to a top management who are also ever present. Considering risk management requires top management buy in and guidance to succeed it is therefore preferable to have a stable team at the top that the RM can report to.

Looking at the negatives, and carrying on from earlier concerns mentioned in part 1 and 2, there is an increase of risk exposure as a result of not getting the right people for critical positions or having a tired workforce which the RM will need to consider when assessing risks to the company. Interestingly, whilst I listed a major positive as being able to deal with the same people on an ongoing basis with no back to back, there is also a risk that the RM struggles with some personalities or that some people don’t see the value of risk management. In these instances it could have been beneficial to have a back to back for those people who may be more positive towards risk management or the RM.

IRAQ – Shift Work – Part 2 (Companies)

Shorter Shifts

When it comes to shorter shifts companies will no doubt see a higher level of productivity amongst employees due to the extra time off and shorter shifts on site. Short shifts require back to backs which can also bring advantages to companies. Having two experienced employees for one position can often add extra expertise or experience. It also allows for excellent succession planning and building up a skilled workforce for other projects or facilities outside of Iraq that the company may be involved with.

It is important to be aware however, that with back to backs you often find that they have different views or approaches to work, as well as different personalities which in some instances can cause conflicts or disagreements. Additionally, during handover from one back to back to the other, key information or details of decisions or requests that were made during their shift could be missed out or unclear causing delays or disputes. This is of course more relevant to more senior positions that require decision making responsibilities. Most other positions have established processes that everyone understands and is comfortable with, ensuring that everyone works consistently.

In order to avoid disagreements and build experience within their workforce, companies can often recruit a more experienced person for a position with a younger back to back who can gain experience and will be unlikely to cause conflict.

A major downside to shorter shifts is the financial impact. Not only do companies incur additional direct costs as a result of requiring back to backs, such as, increased recruitment process, visa issuance and health insurance costs, but they also have to consider the cost of shift changes (double the number of flights and transportation from site to airport in armoured vehicles etc.). All these costs only increase further considering the fact that more HR, travel, security and administrative staff (and their back to backs) are required to deal with the additional work.

Longer shifts

From a financial perspective, a company may find it much cheaper to work with longer shifts as it eliminates the need for hiring back to backs. There are plenty of non-financial benefits too however, Aside from not facing some of the issues mentioned above with regards to back to backs, decisions can be made much faster and with less disagreements or misunderstandings whilst initiatives can be implemented with more consistency. Most of this is due to the fact that the workforce works more as a single unit without the disruption of constant shift changes.

On the negative side, companies who offer longer shifts may find it difficult to attract staff of sufficient quality for more senior or critical positions. These people are often in short supply, older and more experienced with more job opportunities and therefore tend to be more attracted to shorter shifts. Once recruited, companies also face the problem mentioned in part 1 of potential staff exhaustion and high stress levels which could lead to morale issues, productivity loss or even mistakes on the job leading to incidents or accidents occurring.

There are obviously ways to manage these issues such as offering a shorter shift to critical positions which require specific expertise whilst keeping longer shifts for less critical positions that can always be filled by employees looking for experience, or from which there is a large pool to choose from. Again, once recruited it will be vital to make sure that they will be in a comfortable working environment. Facilities (Gym, pool, sauna, pool table etc.), a day off every second week, team building events etc. are just some ideas of what a company can do which will contribute to better morale and concentration as well as helping to manage stress levels.

 

IRAQ – The Arrival

Arriving in Iraq for the first time and Landing at the airport in Iraq was worrying enough but as the bus drove away from the plane to the terminal leaving just myself and another passenger on the tarmac due to it being too full, in the 45 degree heat, I started wondering what I had gotten myself into. Constantly looking around for signs of danger having not seen any security guards was really playing on my mind. I waited. I waited some more as the heat and my nerves started getting the better of me until finally, after about 15 minutes the bus arrived to take us to the terminal. I have never been so relieved to see a bus.
Entering the passport control area of the airport brought back familiar memories of the airports In Saudi Arabia. The long queues, confused travellers and slight chaos brought a familiarity that was quite comforting. It was not entirely clear where I was supposed to be going in order to get my entry visa, but after queuing up several times, only to be sent to a different queue, and waiting for an hour for my visa to be processed, I finally got the stamp required to enter into Iraq.

Whilst the process was exhausting, I have to say my experience of the Iraqis working at the airport was extremely positive. They were all very friendly, wanting to practice their English, or appreciating the few words of Arabic I used and of course always keen to talk about Football! This above all things really helped calm the nerves.

Travelling to Site

If waiting around on the tarmac at the airport made me nervous, then what was to come next really put things into perspective. Exiting the airport led us to a huge car park with Armoured vehicles and armoured guards everywhere. I started to feel the nerves really kicking in! It reminded me of movies set in war zones! Again, what had I let myself in for!?

Without going into too much sercurity detail, it’s a 2-3 hour journey in armoured vehicles. They can reach very high temperatures inside even with the air-conditioning and they also magnify every bump and pothole in the deteriorated roads. Add to that the heavy body armour you have to wear and it’s a recipe for a very uncomfortable journey.

In hindsight, the fact that you are so well protected with vehicle and guards as well as the fact that there are so many of these armoured vehicles on the road making it very difficult to target a specific group of people, is actually quite comforting. Unfortunately when you first arrive you aren’t thinking quite so rationally.

Arriving at the site was an absolute relief and stress levels dropped significantly. Seeing how difficult it was to access the site, the large walls surrounding the sites as well as the security guards and security checkpoints in place, really help put the mind at ease. Additionally, the normality within the walls of the camp make it easy to forget where you are after a few days.

In my next Blog entry I intend to share my thoughts on camp life and my initial impressions of Iraq (especially how surprisingly pleasant and green it is