Over decades, organizations have learned and mastered how to identify, analyze, and mitigate risks. Whether it is financial, IT, legal, or operational, they could find a solution. However, a new type has recently emerged—social risk. In this article at Risk Magazine, Robert Ludke shares what this new genre means for today’s organizations.
Understand Social Risk
Per Ludke, “social risk is a manifestation of what goes on around us and is driven by influences inside every one of us—beliefs, emotions, mental health, fears and anxieties.”
Understandably, it is different from risks caused due to cybercriminals, safety incidents at your office space, organizational issues, and natural calamities. Of course, you can limit the effects of these to specific departments or business units. But how do you combat a social risk when you chance upon one? Here are a few ways:
Social risk is created by human-based conditions like economic issues, social and communal requirements, and mental setup. It is changing every day and quite randomly. In this age of globalization, where everyone has the right to voice opinions, the consequences are widespread and felt across all territories. Though it can amplify through social media networks, each social risk is different.
In January 2021, GameStop stock prices soared 1500% within two weeks. It raised a lot of eyebrows and even made regulators investigate fraudulent activities. To many investors, GameStop symbolized an answer to the otherwise popular Big Tech brands. They wanted to show that any company can be overturned, even Apple, should there be enough forces against it.
Steps to Address:
Before joining a cause, understand the real reason behind the movement. Your organization can then create a hierarchy of commands to address the social risk.Build a board of partners from diverse backgrounds so that you have sources everywhere for alerts regarding an impending risk.Instead of sharing your views, listening is the best strategy to work on a social risk.Make communication your equipment to address the social risk because it can help you turn resistance into a diplomatic dialog.You must respect the people you work with. Do you want to be that Bird company’s HR that let go of employees over a Zoom call? Or, would you prefer to be the Valencia College administrator that called up students to check how they are dealing with Covid-19?
To view the original article in full, visit the following link: http://www.rmmagazine.com/articles/article//2021/04/01/-Understanding-and-Mitigating-Social-Risk-