risk management problem solving

8 common risk management challenges (and how to solve them)

The fact that 36% of organisations plan to increase investment in risk and compliance says it all – risk management challenges haven't gone anywhere .

But you already know that. As a risk manager, head of risk, or even chief risk officer, you’re responsible for business success, reputation management, the safety and security of employees, and loads more.

Whether you manage risk for a small to medium-sized enterprise (SME) or a global business, many of the challenges are the same, spanning from operational annoyances to business-threatening risks.

We’re here to break them down and solve them for you.

👉 Aligning risk management with business goals

👉 Supply chain difficulties

👉 Risk processes that are clunky or slow-moving

👉 Cyber-attacks are risk are on the rise

👉 Lack of risk ownership and accountability

👉 Environmental, social, and governance (ESG) risks

👉 Communication and collaboration difficulties

👉 Reporting and data insufficiencies

Aligning risk management with business goals

A tale as old as time.

If we could recommend anything here to focus on, it’d be this.

Too often, business objectives are decided on in isolation. Risk management either goes forgotten about or intentionally dismissed, for fear the company’s GRC professionals will put a dampener on its grand plans.

Not very nice, eh? We’re just realists, that’s all.

In our experience, the organisations that successfully align their risk management and business goals are those that properly utilise their data (we’ll get to that), involve risk management at every phase of decision-making, and communicate, communicate, communicate.

Supply chain difficulties

Geopolitical tensions aren’t going anywhere, and the impact of Covid-19 is still felt (it did, after all, have a negative impact on 72% of businesses’ supply chains ).

It’s as simple as this: supply chain difficulties are one of the biggest challenges to effective risk management today.

But post-pandemic, businesses are investing more than ever in their supply chains, with a study by EY pointing to a particular focus on efficiency and visibility (top priorities over the next year for 65% and 61% of respondents respectively).

In fact, their study provides a useful, five-step framework for future-proofing your supply chains – a crucial goal for all risk managers, we’re sure you’d agree.

• Reimagine the strategic architecture of your supply chain
• Build transparency and resiliency
• Extract cash and cost from your supply chain
• Create a competitive advantage with sustainability (again, more on that shortly)
• Drive agility and opportunities for growth through a digital supply chain

Risk processes that are clunky or slow-moving

Risk management should never be reactive – but it should still be agile.

There’s a difference between knee-jerk reactions and the ability to recognise risks, rally your resources, and tackle them in a timely, data-driven manner.

That second bit? That’s your job as a risk professional.

But legacy processes (spreadsheets you’ve outgrown), a lack of data (either scattered or simply non-existent), and an excess of stakeholders (too many cooks) can mean when sign-off arrives, it’s already too late.

The solution?

“Keep it simple”, says Sakir Salih, Head of Compliance at Bondsmith .

Having worked at firms like Goldman Sachs and Barclays, he knows a thing or two about what makes a good risk process. But his history in the profession also means he’s experienced the full spectrum of agility.

“I’ve seen risk management solutions grow into something all-consuming, eating up time, energy, and resources.

“The most important thing is a simple interface that’s understood by everyone who needs to understand it.”

If you’re looking for a risk management platform with an interface the former Chief Risk Officer at Visa described as intuitive and efficient, click here to book a no-commitment demo of RiskSmart .

Cyber-attacks and risk are on the rise

You don’t have to look hard to find a boatload of terrifying cyber risk stats.

• 43% of cyber-attacks are aimed at small businesses
• Despite that, only 14% are prepared for one
• It takes an average of 197 days to detect a breach and up to 69 to contain it

You know the story. A highly remote workforce means cyber concerns are here to stay. New technologies in businesses are rolled out slower than ever. There’s less overall control of company devices.

We spoke to Chris Eastwood, co-owner of the Rybec Group – a leading cyber security consultancy – on the best course of action.

Here are his four recommendations:

• Identify your assets . “Asset management is key”, Chris notes. “What data and systems do you need to protect? Think about physical and digital assets, and create a list for your hardware and software.”
• Assess your risks . What threats are there to those assets? How likely are they, and what damage could they cause?
• Implement controls . These could include technical measures, like firewalls and intrusion detection systems, and non-technical measures, like employee training and security awareness initiatives.
• Monitor and improve. Once the controls are in place, you need to make sure they’re working effectively.

Bonus tip: “Consider cyber insurance ”, says Chris. “It can help protect you from the financial losses associated with a cyber-attack. Just Cyber Essentials certification alone can give your business free cyber insurance cover up to £25k.”

Lack of risk ownership and accountability

A common issue we hear on our discovery calls.

But it’s more than the fact no one wants to be the fall guy – it’s usually a practicality thing.

Risk processes often aren’t mature enough to allow for ownership. Spreadsheets certainly don’t, unless there’s a given column reserved for each member of the GRC team. To be honest, we’ve never seen it work well – except for on software.

There are no quick fixes here. Instead, look to establish a more mature risk culture in which risk is understood – not shied away from – throughout the business.

Environmental, social, and governance (ESG) risks

Consumers are demanding more than ever.

In fact, 88% prioritise buying from companies that have ethical sourcing strategies in place.

But the fact remains: getting ESG right is … kinda difficult.

Environmental risks, for example, may be universal, but they’re also less tangible. That means they’re hard to measure. And us risk managers like measuring things.

But even considering climate risk as part of your overall risk management strategy will, at least for now, put you ahead of 90% of businesses, both in terms of risk avoidance and business smarts.

Because outside of the moral imperative of impending climate disaster, there are opportunities to be found in engaging with ESG more openly.

For example, a joint study from McKinsey and NielsenIQ found that products boasting ESG-related claims averaged 8% more cumulative growth over the past five years than those that didn’t. A “solid business decision” indeed.

But don’t just start throwing hollow claims around, because those very same consumers are increasingly skeptical of brand claims .

Instead, we recommend partnering with climate consultancies like TBL Services , along with pushing for the continuous discussion of ESG and climate risk in both your risk management and business-wide decision-making.

Communication and collaboration difficulties

This is a biggie.

Communication is at the heart of effective risk management and needs to be understood from the top to the bottom.

The problem is that most risk processes aren’t built with collaboration in mind. Spreadsheets are usually structured to the original owner’s taste and permissions are easily confused.

The majority of risk solutions out there are no better, either – your GRC team’s true potential can be easily gatekept by systems built around pay-to-play, with extra users costing way into the thousands.

To make communication and collaboration challenges a problem of the past, you and your team should consider the following:

• Building a mature risk culture, so the importance of risk is truly embedded throughout the business
• Finding risk processes that work for your current size, but are guaranteed to scale with you. For now, that might be spreadsheets, but you don’t want them to be the bottleneck to company growth in under two years’ time
• Consider a GRC platform that champions simplicity and has no hidden fees (they’re the kind of surprise no one likes). If that sounds like what you need, you can learn more about RiskSmart here .

Reporting and data insufficiencies

Remember what Chris told us earlier?

Identifying your risks and putting controls in place isn’t enough.

How do you know they’re working? How do you know they’re as effective now as they were six months ago? How do you know they’ll still work a year from now?

Sure, be confident that you have data, but just knowing it’s there isn’t enough. Effective risk management is all about constant monitoring.

So familiarise yourself with your data. Understand what you have access to. Become intimate with it. Not in a weird way.

And, again, if the need to produce monthly or quarterly presentations for meetings is eating into too much of your time, scope out the GRC platform market for a solution with powerful reporting capabilities, so you can be ready to go at the push of a button.

Because no one became a risk manager so they could do makeshift graphic design on PowerPoint.

There are no quick fixes

Quick fixes rarely exist in risk management.

But by addressing the common challenges listed here – and you’re sure to resonate with some of them – you’ll be freeing up time, enabling more business, and, importantly, enjoying your job more than ever.

Ocean Finance was experiencing several of the challenges listed here before making the switch from spreadsheets to RiskSmart – find out how it turned its GRC efforts around here .

Book a demo

Build resilience, centralise your work, and unlock your risk team's potential.

• Risk management and governance

Risk management is the process of identifying, assessing and controlling threats to an organization's capital, earnings and operations. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters. This comprehensive guide explains why risk management is more important than ever and leads readers through how to establish a risk management plan, with hyperlinked articles with additional, essential information.

Top 12 risk management skills and why you need them, effective risk management is necessary in all parts of a business. here are a dozen skills that risk managers need to be successful in their jobs..

• Andy Patrizio

Risk management skills are a must for anyone who aspires to be a business leader or, especially, a risk manager. There are risks to be addressed at all business levels , and if business leaders and risk management professionals are unable to manage the risks effectively, their upward mobility in organizational charts likely will grind to a halt.

The best risk managers are often unknown to many of the employees in their organization because they either mitigate risks before business problems result or prevent risks from becoming an issue in the first place. People often only notice when things go wrong, not when they go right. A business could have 364 days of trouble-free operations in a year. But, on the one day a mission-critical server crashes, there's a data breach, an executive's laptop is stolen or another risk-related event occurs, all eyes are on the risk management team in an organization .

Being a capable risk manager requires awareness and knowledge to uncover potential business risks and present them to the people who are best suited to decide if the risks are acceptable or resolve ones that are problematic. Risk managers don't necessarily have to make required fixes themselves -- they just need to bring the situation to someone who can.

What is risk management?

Risk management is the process of identifying, assessing and managing potential issues that could have a negative impact on an organization's business operations and financial performance. It involves being mindful of potential risks and what could go wrong -- both the expected and the unexpected. Risk managers must be aware of all forms of risk in their area of responsibility -- and beyond, if possible. They should know how those risks would affect the business and what steps to take or what contingency plans to activate to reduce risks and avoid business problems .

This article is part of

What is risk management and why is it important?

• Which also includes:
• AI in risk management: Top benefits and challenges explained
• 6 open source GRC tools compliance professionals should know
• Risk assessment matrix: Free template and usage guide

Is risk management a soft skill?

Risk management is a complex and comprehensive process . It's definitely not a soft skill -- or, at least, not just one. There are many types of risk, including compliance, security, operational, financial and reputational risks. Risk managers require a combination of both hard and soft skills to successfully address all the various risks.

For example, compliance is a key risk factor. There are few greater risks than running afoul of government regulatory agencies -- compliance issues often can do far more damage to an organization than a hacker or out-of-date software. Risk managers need to constantly study, evaluate and implement new regulations as they come -- and they do keep coming.

In addition, proactivity is the hallmark of effective risk management. A reactive approach means addressing problems after they become problems, which can result in flawed risk management initiatives . Risk managers need to stay ahead of the risk curve.

How do you become a good risk manager?

Good risk managers need a variety of skills. The following are 12 important ones they should possess.

1. Analytical skills

Risk managers need analytical skills to collect data, analyze risks and make sound decisions based on the results. They also need to be able to spot holes and weaknesses that others may have missed in IT systems and infrastructure, business processes, financial practices and other areas.

2. Problem-solving skills

Risk managers also need to be able to solve problems. While some risks might require passing the issue on to someone above a risk manager's pay grade, others often will be left to the risk manager to solve. As a result, they need to like getting their hands dirty from a problem-solving standpoint.

3. People management and leadership skills

All the problem-solving skills in the world are useless if managers can't rouse the troops. Risk managers need good people management and leadership skills to inspire and incentivize staff members. In some cases, risk management might require upsetting the apple cart, and managers need the respect of their team through the inevitable challenges.

4. Relationship-building skills

This goes hand in hand with the leadership skills. Risk managers must be able to build relationships -- and not just with their immediate subordinates. They should also be able to do so with their superiors, as well as other corporate executives and department heads.

5. Financial knowledge

Risk managers need to know the potential cost of network outages and security breaches, as well as the likely financial impact of other business risks. Ultimately, financial risk will get everyone's attention in the C-suite and individual departments. The costs of lost productivity, lost income and financial penalties can be crippling to a business if risks aren't managed properly.

6. Regulatory knowledge

If there's one thing governments do well, it's regulating things. Regulations are constantly being added and updated. Risk managers must invest some of their time to stay up to date on all the changes and understand new and evolving regulatory requirements.

7. Business understanding

To identify and estimate risks to a company, risk managers need to understand how the business works. They can't say finance doesn't matter because they're in IT, or vice versa. Business understanding is a must -- especially if the risk manager aspires to join the C-suite in the future.

8. Ability to quantify risks

After assembling a list of potential business risks, risk managers need to be able to do a risk assessment and then rank the likelihood and severity of each risk. They should create and regularly update a list that notes the most likely to least likely risks, as well as the most severe to least severe ones. This helps determine the risk management program's focus on an ongoing basis.

9. Ability to plan risk management approaches

After preparing the ranked list of risks, a risk manager then needs to lead the process of planning how to manage them. That could include accepting risks that are deemed reasonable based on an organization's agreed-upon risk appetite and risk tolerance or adopting strategies to mitigate risks so they pose less of a business threat. In other cases, the organization might transfer risks to a third party or seek to eliminate them through risk avoidance measures.

10. Strategic thinking

No sports team ever wins by only playing defense -- and that applies here, too. If risk managers look at how things affect the business as a whole, they might come up with a better way for their organization to operate. Part of a risk manager's job is to see the big picture -- and maybe notice something others have missed.

11. Adaptability

Risk management requires constant education and keeping up with relevant news, trends and issues. Not so long ago, no one had heard of ransomware . Now, it's one of the greatest cybersecurity threats that companies face. News sites and industry journals should be regular reading material for risk managers.

12. Mathematics skills

Because risk management involves a lot of data analysis, risk managers must be comfortable with numbers and calculations. There are many analytics tools available -- from Microsoft Excel to business intelligence software -- that can help with cost estimates and other math work. But solid math skills are a prerequisite for using such tools effectively.

Create a culture of psychological safety to help manage risk

People often throw around the phrase, "Don't shoot the messenger." But, all too often, corporate management does shoot the messenger. This creates a climate where many workers are afraid to speak up about problems that can create business risks.

For example, after all Boeing 737 MAX airplanes were grounded due to two fatal crashes in 2018 and 2019, it was revealed that engineers knew the planes had defects but were afraid to go to management.

To avoid such situations, a new way of thinking has emerged that applies the concept of psychological safety to work teams. Team psychological safety is about creating a climate where people in an organization aren't afraid of being punished for making a mistake or being the bearer of bad news. It's meant to ensure that employees aren't reluctant to raise issues -- especially ones that involve serious business risks. As a result, risk managers should learn about it and incorporate it into their processes.

Traditional vs. enterprise risk management: How do they differ?

Implementing an enterprise risk management framework

Top enterprise risk management certifications to consider

ISO 31000 vs. COSO: Comparing risk management standards

12 top enterprise risk management trends

Related Resources

• Trustworthy AI A Guide To Support Cdos And Cios To Attain An Ethical And ... –NTT
• Using PAI to Detect Russian Disinformation –Babel Street

Dig Deeper on Risk management and governance

Top 10 essential skills for ERP professionals in 2024

risk management specialist

intrapreneur (intrapreneurship)

SMEs upping security investment in face of growing threats

Containers and VMs have their own use cases, but one takes the lead in efficiency. Compare the two options, and see how Docker ...

Amazon Athena can provide an efficient, cost-effective method of data analysis. But did you properly optimize Athena performance ...

Centralized identity management is vital to the protection of your organization's resources. Do you know how to secure Azure ...

QR codes are a convenient tool for Android Enterprise enrollment, but this method has some drawbacks. Discover the factors ...

For organizations that value convenience and UX, zero touch could be an ideal Android Enterprise enrollment method. Learn about ...

Apple has built a Private Cloud Compute server to process and then delete data sent from Apple Intelligence running on an iPhone,...

Blockchain is most famous for its cryptocurrency applications, but data centers can employ it for a variety of business-related ...

In this Q&A, JetCool's CEO talks about the growing interest in liquid cooling and how it's being used to divert heat away from ...

Lenovo sets itself apart from others by offering configured AI products to speed deployment and shape direction, while also ...

Fusing sustainability objectives with IT development is complex. It requires strategy, cooperation and vision. Learn to ...

The social factors of ESG have become more prominent. Here's what they involve and how companies can take tangible actions to ...

Identifying the ESG issues that are important to the business and to both internal and external stakeholders can help ...

• Share on Twitter
• Share on LinkedIn
• Share on Facebook
• Share on Pinterest
• Share through Email

Project Risk Management: How To Do It Well & 5 Expert Tips

Expert Evidence

Galen is a digital project manager with over 10 years of experience shaping and delivering human-centered digital transformation initiatives in government, healthcare, transit, and retail. He is a digital project management nerd, a cultivator of highly collaborative teams, and an impulsive sharer of knowledge. He's also the co-founder of The Digital Project Manager and host of The DPM Podcast.

Effective risk management is crucial for project managers. Explore practical steps, templates, and real-world examples that will help you navigate risk and lead your projects with confidence.

When starting a new project, the responsibility of risk management falls squarely on the project manager's shoulders. While it may sound counterintuitive, the most successful project managers are those who meticulously plan for the worst-case scenarios. Potential risks will arise, and it’s your job to devise a mitigation strategy in your project plan to ensure your team is well-prepared and set up for success.

In this article, we will explore practical steps, templates, real-world examples, and the project management software that can help you navigate risk management and lead your projects with confidence.

What Is Project Risk Management?

Project risk management is the systematic process of proactively identifying, analyzing, evaluating, and responding to potential risk events that could impact your project's objectives. Some common project risks include unrealistic deadlines, cost overruns, scope creep , and changes in stakeholder priorities.

Risk management is not about reacting to problems as they arise but identifying the risk probability and planning for them in advance.

Why Is Risk Management Important?

Not all risks are created equally. Here’s why it’s important to identify and address risks before they become issues. 

• Foresight for informed decisions: Identifying roadblocks early can give you a clearer project view. This empowers informed decisions and mitigation strategies, boosting your success rate.
• Prioritization for easier risk triage: Risk management goes beyond acknowledging problems. It equips you to prioritize threats based on likelihood and impact, ensuring you focus on what matters most.
• Reduced costs and delays: Identifying issues early can minimize costly delays and budget overruns that often occur when scrambling to fix problems after they arise.
• Enhanced stakeholder satisfaction: Delivering projects without hiccups builds trust with stakeholders. Risk management showcases your ability to anticipate and address challenges, leading to a strong reputation for getting things done. 

Types Of Risk On Projects

Proactive risk management isn't just about anticipating problems; it's about considering all possibilities to ensure a successful project. Here's a breakdown of common project risks and what to prioritize:

How To Manage Risk On Projects

Sign up to get weekly insights, tips, and other helpful content from digital project management experts.

• Your email *
• Yes, I want to sign up to receive regular emails filled with tips, expert insights, and more to build my PM practice.
• By submitting you agree to receive occasional emails and acknowledge our Privacy Policy . You can unsubscribe at any time. Protected by reCAPTCHA; Google Privacy Policy and Terms of Service apply.
• Phone This field is for validation purposes and should be left unchanged.

1. Identify Risks

Identifying risks involves brainstorming all potential threats and opportunities that could impact your project. Gather your team and stakeholders for a workshop, and get the ideas flowing by considering:

• What could go wrong? List anything that might delay, derail, or negatively affect your project.
• What could go right? Consider unexpected positive developments that could benefit your project.
• Review past projects. Think about challenges faced in similar endeavors and how they can inform your risk assessment.

Example : Let's say you're leading a website redesign project. Here's a sample risk identification list:

• Risk: A key developer gets sick and falls behind schedule.
• Risk: Unforeseen compatibility issues arise between new design elements and existing plugins.
• Opportunity: Discover a new design tool that significantly improves workflow efficiency .

2. Analyze Risks

Once you've identified your risks, analyze their likelihood of occurring and the potential impact they could have on your project. A common technique is to use a risk matrix or risk management plan .

This is essentially a grid with a severity rating (high, medium, low) on one axis and a probability rating (very likely, likely, unlikely) on the other. Each risk is plotted on the matrix based on its likelihood and severity.

Example : Your website redesign risk matrix might show that developer illness is a "medium likelihood" but a "high severity" risk. Focus on mitigation strategies here to prevent significant impacts on the project timeline. Compatibility issues, on the other hand, might be "low likelihood" but "medium severity." While less likely to occur, a plan to address them would still be wise.

3. Prioritize Risks

Remember, not all risks are equal. Use the risk matrix from Step 2 to identify the risks that fall into the "high likelihood" and "high severity" categories. These are your top priorities and should be addressed first.

4. Assign An Owner To Each Risk

For each identified risk, designate the team member responsible for monitoring and developing mitigation strategies. This promotes accountability and ensures someone is actively watching out for each potential issue.

Choose team members with the skills and experience most relevant to their assigned risk. For instance, the most technically experienced team member might be best suited to monitor compatibility issues.

5. Mitigate Risks

There are several ways to mitigate risks, such as:

• Avoidance: Can you completely eliminate the risk by changing your approach?
• Reduction: Can you lessen the likelihood or impact of the risk?
• Transfer: Can you shift the ownership or responsibility for the risk to someone else (e.g., insurance)?
• Contingency planning : Develop a backup plan in case the risk occurs.

Example : To mitigate the risk of a key team member falling ill, a mitigation strategy could be to delegate some tasks or have a backup team member trained and ready to step in.

By creating mitigation plans, you're prepared to address potential challenges and minimize their impact on the project.

6. Monitor Risks

Risks don't stay static. Regularly review your risk register and update it as needed.

Schedule a series of project meetings to manage risks proactively. Ensure you’re aligned on the communication format and cadence for these meetings. Whatever you choose, always remember to be transparent so your team has full visibility.

Risk Management Plan Template

In its most minimal form, a risk management plan could be a handful of pages describing:

• How and when to assess risk
• The roles and responsibilities for risk owners
• At what point the project risk should trigger an escalation

This can also be done using a RAID log, which can help you track risks, assumptions, issues, and dependencies so that the project manager and team can stay aligned.

Get access to our action-ready RAID log template through DPM membership . You’ll also get a filled-in sample to see how it should look when complete.

Tools For Managing Risk

Imagine managing a complex project with dozens of potential risks. Tracking them all on paper or in spreadsheets is a nightmare.

Luckily, there are many simple to advanced tools to help you streamline tasks, improve communication, and provide a source of truth for risk management.

Getting in front of potential risks like technical bugs, scope creep, and unexpected delays will help you drive more successful projects.

Here’s a list of the best project management software for achieving this:

• 1. Wrike — Best for large projects and scaling organizations
• 2. monday.com — Best for workflow automation
• 3. Smartsheet — Best for stakeholder project views
• 4. ClickUp — Best for task customization
• 5. Jira — Best for cross-team project tracking
• 6. Zoho Projects — Best for integration with Zoho Suite
• 7. Visor — Best for spreadsheet-based management
• 8. Quickbase — Best for process automation
• 9. Hub Planner — Best for resource scheduling
• 10. Bonsai Agency Software — Best for agencies & consulting firms

Find specific risk management software here .

Best Practices For Managing Risk

Here are some additional best practices and strategies to elevate your risk management game .

1. Foster a Culture of Open Communication

Create a risk-aware culture where open communication is encouraged. Schedule regular brainstorming sessions specifically dedicated to risk identification and mitigation. Frame these sessions as collaborative problem-solving exercises, not opportunities for finger-pointing. This fosters an environment where team members feel comfortable raising concerns and suggesting solutions.

2. Integrate Risk Management Throughout the Project Life Cycle

Risks can emerge at any stage. Regularly revisit your risk register and update it during project meetings. This ensures consistent monitoring and adaptation of mitigation strategies. Consider using a project management software with built-in risk management features to streamline this process.

3. Conduct a Pre-Mortem Analysis

Hold a pre-mortem analysis workshop early on. Ask "what if" questions to envision worst-case scenarios and identify potential failure points. Use these findings to inform your risk mitigation strategies.

More Articles

Time tracking: your secret risk management superpower, increase project success with a risk register + easy template, raid logs: definition, template, examples, & how to guide, 4. leverage scenario planning.

Identify 2-3 potential future states (positive and negative) for your project. Brainstorm how you'd adapt your approach to succeed under each scenario. This helps you develop flexible strategies that can adapt to changing circumstances.

5. Celebrate Risk Management Successes

Publicly recognize team members who identified or mitigated critical risks. This reinforces the importance of risk management and motivates continued vigilance. Consider using a RAID Log to track identified risks, actions to address them, issues (changes), and decisions made.

Join For More Insights On Project Risk

We did a workshop on managing risk —it's only available to DPM members. If you're not a member, consider joining our active community of fellow project managers .

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

The Risks You Can’t Foresee

• Robert S. Kaplan,
• Herman B. Leonard,
• Anette Mikes

No matter how good their risk management systems are, companies can’t plan for everything. Some risks are outside people’s realm of experience or so remote no one could have imagined them. Some result from a perfect storm of coinciding breakdowns, and some materialize very rapidly and on an enormous scale. These novel risks, as the authors call them, cannot be addressed by following a standard playbook.

This article describes how to detect the emergence of a novel risk (start by looking for anomalies and appointing “chief worry officers”) and then how to mobilize resources to mitigate its impact, deploying a critical incident team or empowering local personnel to tackle it.

Building Organizational Resilience

In unstable times the routines organizations use to get work done often break down. When that happens, teams need to shift gears quickly and add two other approaches to their tool kits: heuristics, or simple rules of thumb that speed up processes and decision-making, and improvisation, spontaneous efforts to address problems and opportunities. Drawing on the experiences of a successful expedition up the most challenging route on Mount Everest, the authors explain when each approach works best and how your organization can prepare itself to weather crises by learning to alternate them.

To Recognize Risks Earlier, Invest in Analytics

Recently analytics has become the unloved stepchild of data sciences. That’s a shame, says Kozyrkov, Google’s chief decision scientist, because during turbulence, analytics is essential. When a disaster strikes, the data that goes into statistical and AI models can quickly become obsolete, rendering them useless. Analytics, in contrast, helps you figure out where events are heading and what questions to ask. Analysts are explorers who keep their finger on the pulse of what’s happening by scanning the horizon and searching internal and external data sources. Effective analytics functions cannot be cobbled together overnight, however, and firms need to commit to building an environment in which they’ll flourish.

The complete Spotlight package is available in a single reprint.

What to do when there’s no playbook

Idea in Brief

The problem.

Even a company with a world-class risk management system will come up against novel risks it has not planned for.

Why It Happens

Some risks are so remote that no manager imagines them. And even if the firm does envision them, it may be unwilling to invest in the capabilities and resources to cope with them because they seem so unlikely.

The Solution

Recognize novel risks by being alert for anomalies, interpreting reports from the field, and scanning for unusual events outside your industry. Once you’ve identified a novel risk event, mobilize an incident team or empower your people on the front lines to deal with it quickly.

Well-run companies prepare for the risks they face. Those risks can be significant, and while they’re not always addressed successfully—think Deepwater Horizon, rogue securities traders, and explosions at chemical plants—the risk management function of a company generally helps it develop protocols and processes to anticipate, assess, and mitigate them .

To cope—and thrive—in uncertain times, develop scripted routines, simple rules, and the ability to improvise.

• Robert S. Kaplan is a senior fellow and the Marvin Bower Professor of Leadership Development emeritus at Harvard Business School. He coauthored the McKinsey Award–winning HBR article “ Accounting for Climate Change ” (November–December 2021).
• HL Herman B. Leonard is the Eliot I. Snider and Family Professor of Business Administration at Harvard Business School and the George F. Baker, Jr., Professor of Public Sector Management at Harvard’s Kennedy School of Government.
• Anette Mikes is a fellow at Hertford College, Oxford University, and an associate professor at Oxford’s Saïd Business School.

Partner Center

Risk Management 101: Process, Examples, Strategies

Emily Villanueva

August 16, 2023

Effective risk management takes a proactive and preventative stance to risk, aiming to identify and then determine the appropriate response to the business and facilitate better decision-making. Many approaches to risk management focus on risk reduction, but it’s important to remember that risk management practices can also be applied to opportunities, assisting the organization with determining if that possibility is right for it.

Risk management as a discipline has evolved to the point that there are now common subsets and branches of risk management programs, from enterprise risk management (ERM) , to cybersecurity risk management, to operational risk management (ORM) , to  supply chain risk management (SCRM) . With this evolution, standards organizations around the world, like the US’s National Institute of Standards and Technology (NIST) and the International Standards Organization (ISO) have developed and released their own best practice frameworks and guidance for businesses to apply to their risk management plan.

Companies that adopt and continuously improve their risk management programs can reap the benefits of improved decision-making, a higher probability of reaching goals and business objectives, and an augmented security posture. But, with risks proliferating and the many types of risks that face businesses today, how can an organization establish and optimize its risk management processes? This article will walk you through the fundamentals of risk management and offer some thoughts on how you can apply it to your organization.

What Are Risks?

We’ve been talking about risk management and how it has evolved, but it’s important to clearly define the concept of risk. Simply put, risks are the things that could go wrong with a given initiative, function, process, project, and so on. There are potential risks everywhere — when you get out of bed, there’s a risk that you’ll stub your toe and fall over, potentially injuring yourself (and your pride). Traveling often involves taking on some risks, like the chance that your plane will be delayed or your car runs out of gas and leave you stranded. Nevertheless, we choose to take on those risks, and may benefit from doing so. 

Companies should think about risk in a similar way, not seeking simply to avoid risks, but to integrate risk considerations into day-to-day decision-making.

• What are the opportunities available to us?
• What could be gained from those opportunities?
• What is the business’s risk tolerance or risk appetite – that is, how much risk is the company willing to take on?
• How will this relate to or affect the organization’s goals and objectives?
• Are these opportunities aligned with business goals and objectives?

With that in mind, conversations about risks can progress by asking, “What could go wrong?” or “What if?” Within the business environment, identifying risks starts with key stakeholders and management, who first define the organization’s objectives. Then, with a risk management program in place, those objectives can be scrutinized for the risks associated with achieving them. Although many organizations focus their risk analysis around financial risks and risks that can affect a business’s bottom line, there are many types of risks that can affect an organization’s operations, reputation, or other areas.

Remember that risks are hypotheticals — they haven’t occurred or been “realized” yet. When we talk about the impact of risks, we’re always discussing the potential impact. Once a risk has been realized, it usually turns into an incident, problem, or issue that the company must address through their contingency plans and policies. Therefore, many risk management activities focus on risk avoidance, risk mitigation, or risk prevention.

What Different Types of Risks Are There?

There’s a vast landscape of potential risks that face modern organizations. Targeted risk management practices like ORM and SCRM have risen to address emerging areas of risk, with those disciplines focused on mitigating risks associated with operations and the supply chain. Specific risk management strategies designed to address new risks and existing risks have emerged from these facets of risk management, providing organizations and risk professionals with action plans and contingency plans tailored to unique problems and issues.

Common types of risks include: strategic, compliance, financial, operational, reputational, security, and quality risks.

Strategic Risk

Strategic risks are those risks that could have a potential impact on a company’s strategic objectives, business plan, and/or strategy. Adjustments to business objectives and strategy have a trickle-down effect to almost every function in the organization. Some events that could cause strategic risks to be realized are: major technological changes in the company, like switching to a new tech stack; large layoffs or reductions-in-force (RIFs); changes in leadership; competitive pressure; and legal changes.

Compliance Risk

Compliance risks materialize from regulatory and compliance requirements that businesses are subject to, like Sarbanes-Oxley for publicly-traded US companies, or GDPR for companies that handle personal information from the EU. The consequence or impact of noncompliance is generally a fine from the governing body of that regulation. These types of risks are realized when the organization does not maintain compliance with regulatory requirements, whether those requirements are environmental, financial, security-specific, or related to labor and civil laws.

Financial Risk

Financial risks are fairly self-explanatory — they have the possibility of affecting an organization’s profits. These types of risks often receive significant attention due to the potential impact on a company’s bottom line. Financial risks can be realized in many circumstances, like performing a financial transaction, compiling financial statements, developing new partnerships, or making new deals.

Operational Risk

Risks to operations, or operational risks, have the potential to disrupt daily operations involved with running a business. Needless to say, this can be a problematic scenario for organizations with employees unable to do their jobs, and with product delivery possibly delayed. Operational risks can materialize from internal or external sources — employee conduct, retention, technology failures, natural disasters, supply chain breakdowns — and many more.

Reputational Risk

Reputational risks are an interesting category. These risks look at a company’s standing in the public and in the media and identify what could impact its reputation. The advent of social media changed the reputation game quite a bit, giving consumers direct access to brands and businesses. Consumers and investors too are becoming more conscious about the companies they do business with and their impact on the environment, society, and civil rights. Reputational risks are realized when a company receives bad press or experiences a successful cyber attack or security breach; or any situation that causes the public to lose trust in an organization.

Security Risk

Security risks have to do with possible threats to your organization’s physical premises, as well as information systems security. Security breaches, data leaks, and other successful types of cyber attacks threaten the majority of businesses operating today. Security risks have become an area of risk that companies can’t ignore, and must safeguard against.

Quality Risk

Quality risks are specifically associated with the products or services that a company provides. Producing low-quality goods or services can cause an organization to lose customers, ultimately affecting revenue. These risks are realized when product quality drops for any reason — whether that’s technology changes, outages, employee errors, or supply chain disruptions.

Steps in the Risk Management Process

The six risk management process steps that we’ve outlined below will give you and your organization a starting point to implement or improve your risk management practices. In order, the risk management steps are: 

• Risk identification
• Risk analysis or assessment
• Controls implementation
• Resource and budget allocation
• Risk mitigation
• Risk monitoring, reviewing, and reporting

If this is your organization’s first time setting up a risk management program, consider having a formal risk assessment completed by an experienced third party, with the goal of producing a risk register and prioritized recommendations on what activities to focus on first. Annual (or more frequent) risk assessments are usually required when pursuing compliance and security certifications, making them a valuable investment.

Step 1: Risk Identification

The first step in the risk management process is risk identification. This step takes into account the organization’s overarching goals and objectives, ideally through conversations with management and leadership. Identifying risks to company goals involves asking, “What could go wrong?” with the plans and activities aimed at meeting those goals. As an organization moves from macro-level risks to more specific function and process-related risks, risk teams should collaborate with critical stakeholders and process owners, gaining their insight into the risks that they foresee.

As risks are identified, they should be captured in formal documentation — most organizations do this through a risk register, which is a database of risks, risk owners, mitigation plans, and risk scores.

Step 2: Risk Analysis or Assessment

Analyzing risks, or assessing risks, involves looking at the likelihood that a risk will be realized, and the potential impact that risk would have on the organization if that risk were realized. By quantifying these on a three- or five-point scale, risk prioritization becomes simpler. Multiplying the risk’s likelihood score with the risk’s impact score generates the risk’s overall risk score. This value can then be compared to other risks for prioritization purposes.

The likelihood that a risk will be realized asks the risk assessor to consider how probable it would be for a risk to actually occur. Lower scores indicate less chances that the risk will materialize. Higher scores indicate more chances that the risk will occur.

Likelihood, on a 5×5 risk matrix, is broken out into:

• Highly Unlikely
• Highly Likely

The potential impact of a risk, should it be realized, asks the risk assessor to consider how the business would be affected if that risk occurred. Lower scores signal less impact to the organization, while higher scores indicate more significant impacts to the company.

Impact, on a 5×5 risk matrix, is broken out into:

• Negligible Impact
• Moderate Impact
• High Impact
• Catastrophic Impact

Risk assessment matrices help visualize the relationship between likelihood and impact, serving as a valuable tool in risk professionals’ arsenals.

Organizations can choose whether to employ a 5×5 risk matrix, as shown above, or a 3×3 risk matrix, which breaks likelihood, impact, and aggregate risk scores into low, moderate, and high categories.

Step 3: Controls Assessment and Implementation

Once risks have been identified and analyzed, controls that address or partially address those risks should be mapped. Any risks that don’t have associated controls, or that have controls that are inadequate to mitigate the risk, should have controls designed and implemented to do so.

Step 4: Resource and Budget Allocation

This step, the resource and budget allocation step, doesn’t get included in a lot of content about risk management. However, many businesses find themselves in a position where they have limited resources and funds to dedicate to risk management and remediation. Developing and implementing new controls and control processes is timely and costly; there’s usually a learning curve for employees to get used to changes in their workflow.

Using the risk register and corresponding risk scores, management can more easily allocate resources and budget to priority areas, with cost-effectiveness in mind. Each year, leadership should re-evaluate their resource allocation as part of annual risk lifecycle practices.

Step 5: Risk Mitigation

The risk mitigation step of risk management involves both coming up with the action plan for handling open risks, and then executing on that action plan. Mitigating risks successfully takes buy-in from various stakeholders. Due to the various types of risks that exist, each action plan may look vastly different between risks. 

For example, vulnerabilities present in information systems pose a risk to data security and could result in a data breach. The action plan for mitigating this risk might involve automatically installing security patches for IT systems as soon as they are released and approved by the IT infrastructure manager. Another identified risk could be the possibility of cyber attacks resulting in data exfiltration or a security breach. The organization might decide that establishing security controls is not enough to mitigate that threat, and thus contract with an insurance company to cover off on cyber incidents. Two related security risks; two very different mitigation strategies. 

One more note on risk mitigation — there are four generally accepted “treatment” strategies for risks. These four treatments are:

• Risk Acceptance: Risk thresholds are within acceptable tolerance, and the organization chooses to accept this risk.
• Risk Transfer : The organization chooses to transfer the risk or part of the risk to a third party provider or insurance company.
• Risk Avoidance : The organization chooses not to move forward with that risk and avoids incurring it.
• Risk Mitigation : The organization establishes an action plan for reducing or limiting risk to acceptable levels.

If an organization is not opting to mitigate a risk, and instead chooses to accept, transfer, or avoid the risk, these details should still be captured in the risk register, as they may need to be revisited in future risk management cycles.

Step 6: Risk Monitoring, Reviewing, and Reporting

The last step in the risk management lifecycle is monitoring risks, reviewing the organization’s risk posture, and reporting on risk management activities. Risks should be monitored on a regular basis to detect any changes to risk scoring, mitigation plans, or owners. Regular risk assessments can help organizations continue to monitor their risk posture. Having a risk committee or similar committee meet on a regular basis, such as quarterly, integrates risk management activities into scheduled operations, and ensures that risks undergo continuous monitoring. These committee meetings also provide a mechanism for reporting risk management matters to senior management and the board, as well as affected stakeholders.

As an organization reviews and monitors its risks and mitigation efforts, it should apply any lessons learned and use past experiences to improve future risk management plans.

Examples of Risk Management Strategies

Depending on your company’s industry, the types of risks it faces, and its objectives, you may need to employ many different risk management strategies to adequately handle the possibilities that your organization encounters. 

Some examples of risk management strategies include leveraging existing frameworks and best practices, minimum viable product (MVP) development, contingency planning, root cause analysis and lessons learned, built-in buffers, risk-reward analysis, and third-party risk assessments.

Leverage Existing Frameworks and Best Practices

Risk management professionals need not go it alone. There are several standards organizations and committees that have developed risk management frameworks, guidance, and approaches that business teams can leverage and adapt for their own company. 

Some of the more popular risk management frameworks out there include:

• ISO 31000 Family : The International Standards Organization’s guidance on risk management.
• NIST Risk Management Framework (RMF) : The National Institute of Standards and Technology has released risk management guidance compatible with their Cybersecurity Framework (CSF).
• COSO Enterprise Risk Management (ERM) : The Committee of Sponsoring Organizations’ enterprise risk management guidance.

Minimum Viable Product (MVP) Development

This approach to product development involves developing core features and delivering those to the customer, then assessing response and adjusting development accordingly. Taking an MVP path reduces the likelihood of financial and project risks, like excessive spend or project delays by simplifying the product and decreasing development time.

Contingency Planning

Developing contingency plans for significant incidents and disaster events are a great way for businesses to prepare for worst-case scenarios. These plans should account for response and recovery. Contingency plans specific to physical sites or systems help mitigate the risk of employee injury and outages.

Root Cause Analysis and Lessons Learned

Sometimes, experience is the best teacher. When an incident occurs or a risk is realized, risk management processes should include some kind of root cause analysis that provides insights into what can be done better next time. These lessons learned, integrated with risk management practices, can streamline and optimize response to similar risks or incidents.

Built-In Buffers

Applicable to discrete projects, building in buffers in the form of time, resources, and funds can be another viable strategy to mitigate risks. As you may know, projects can get derailed very easily, going out of scope, over budget, or past the timeline. Whether a project team can successfully navigate project risks spells the success or failure of the project. By building in some buffers, project teams can set expectations appropriately and account for the possibility that project risks may come to fruition.

Risk-Reward Analysis

In a risk-reward analysis, companies and project teams weigh the possibility of something going wrong with the potential benefits of an opportunity or initiative. This analysis can be done by looking at historical data, doing research about the opportunity, and drawing on lessons learned. Sometimes the risk of an initiative outweighs the reward; sometimes the potential reward outweighs the risk. At other times, it’s unclear whether the risk is worth the potential reward or not. Still, a simple risk-reward analysis can keep organizations from bad investments and bad deals.

Third-Party Risk Assessments

Another strategy teams can employ as part of their risk management plan is to conduct periodic third-party risk assessments. In this method, a company would contract with a third party experienced in conducting risk assessments, and have them perform one (or more) for the organization. Third-party risk assessments can be immensely helpful for the new risk management team or for a mature risk management team that wants a new perspective on their program. 

Generally, third-party risk assessments result in a report of risks, findings, and recommendations. In some cases, a third-party provider may also be able to help draft or provide input into your risk register. As external resources, third-party risk assessors can bring their experience and opinions to your organization, leading to insights and discoveries that may not have been found without an independent set of eyes.

Components of an Effective Risk Management Plan

An effective risk management plan has buy-in from leadership and key stakeholders; applies the risk management steps; has good documentation; and is actionable. Buy-in from management often determines whether a risk management function is successful or not, since risk management requires resources to conduct risk assessments, risk identification, risk mitigation, and so on. Without leadership buy-in, risk management teams may end up just going through the motions without the ability to make an impact. Risk management plans should be integrated into organizational strategy, and without stakeholder buy-in, that typically does not happen. 

Applying the risk management methodology is another key component of an effective plan. That means following the six steps outlined above should be incorporated into a company’s risk management lifecycle. Identifying and analyzing risks, establishing controls, allocating resources, conducting mitigation, and monitoring and reporting on findings form the foundations of good risk management. 

Good documentation is another cornerstone of effective risk management. Without a risk register recording all of a company’s identified risks and accompanying scores and mitigation strategies, there would be little for a risk team to act on. Maintaining and updating the risk register should be a priority for the risk team — risk management software can help here, providing users with a dashboard and collaboration mechanism.

Last but not least, an effective risk management plan needs to be actionable. Any activities that need to be completed for mitigating risks or establishing controls, should be feasible for the organization and allocated resources. An organization can come up with the best possible, best practice risk management plan, but find it completely unactionable because they don’t have the capabilities, technology, funds, and/or personnel to do so. It’s all well and good to recommend that cybersecurity risks be mitigated by setting up a 24/7 continuous monitoring Security Operations Center (SOC), but if your company only has one IT person on staff, that may not be a feasible action plan.

Executing on an effective risk management plan necessitates having the right people, processes, and technology in place. Sometimes the challenges involved with running a good risk management program are mundane — such as disconnects in communication, poor version control, and multiple risk registers floating around. Risk management software can provide your organization with a unified view of the company’s risks, a repository for storing and updating key documentation like a risk register, and a space to collaborate virtually with colleagues to check on risk mitigation efforts or coordinate on risk assessments. Get started building your ideal risk management plan today!

Emily Villanueva, MBA, is a Senior Manager of Product Solutions at AuditBoard. Emily joined AuditBoard from Grant Thornton, where she provided consulting services specializing in SOX compliance, internal audit, and risk management. She also spent 5 years in the insurance industry specializing in SOX/ICFR, internal audits, and operational compliance. Connect with Emily on LinkedIn .

Related Articles

5 steps to any effective risk management process

Reading time: about 5 min

Steps of the risk management process

• Identify the risk
• Analyze the risk
• Prioritize the risk
• Treat the risk
• Monitor the risk

While your organization can’t entirely avoid risk, you can anticipate and mitigate risks through an established risk management procedure. Follow this risk management framework to beat the odds and streamline your team for success, making the team more agile and responsive when risks do arise.

What is the risk management process?

It's simply that: an ongoing process of identifying, treating, and then managing risks. Taking the time to set up and implement a risk management process is like setting up a fire alarm––you hope it never goes off, but you’re willing to deal with the minor inconvenience upfront in exchange for protection down the road. 

Identifying and tracking risks that might arise in a project offers significant benefits, including:

• More efficient resource planning by making previously unforeseen costs visible
• Better tracking of project costs and more accurate estimates of return on investment
• Increased awareness of legal requirements
• Better prevention of physical injuries and illnesses
• Flexibility, rather than panic, when changes or challenges do arise

Risk management steps

Follow these risk management steps to improve your process of risk management.

1. Identify the risk

Anticipating possible pitfalls of a project doesn't have to feel like gloom and doom for your organization–quite the opposite. Identifying risks is a positive experience that your whole team can take part in and learn from. Project risks are anything that might impact the project’s schedule, budget, or success.

Leverage the collective knowledge and experience of your entire team. Ask everyone to identify risks they've either experienced before or may have additional insight about. This process fosters communication and encourages cross-functional learning.

Use a risk breakdown structure to list out potential risks in a project and organize them according to level of detail, with the most high-level risks at the top and more granular risks at the bottom. This visual risk management strategy will help you and your team anticipate where risks might emerge when creating tasks for a project.

Once you and your team have compiled possible issues, create a project risk log for clear, concise tracking and monitoring of risks throughout a project.

A project risk log, also referred to as a project risk register , is an integral part of any effective risk management process. As an ongoing database of each project’s potential risks, it not only helps you manage current risks but serves as a reference point on past projects as well. By outlining your risk register with the proper data points, you and your team can quickly and correctly identify and assess possible threats to any project.

2. Analyze the risk

Once your team identifies possible problems, it's time to dig a little deeper. How likely are these risks to occur? And if they do occur, what will the ramifications be? How will you respond?

During this step, your team will estimate the probability and fallout of each risk to decide where to focus first. Then you will determine a response plan for each risk. Factors such as potential financial loss to the organization, time lost, and severity of impact all play a part in accurately analyzing each risk. By putting each risk under the microscope, you’ll also uncover any common issues across a project and further refine the risk management process for future projects.

Ready to improve your systems and reduce failures through FMEA risk analysis?

3. Prioritize the risk

Now prioritization begins. Rank each risk by factoring in both its likelihood of happening and its potential effect on the project.

This step gives you a holistic view of the project at hand and pinpoints where the team's focus should lie. Most importantly, it’ll help you identify workable solutions for each risk. This way, the risk management workflow itself is not interrupted or delayed in significant ways during the treatment stage.

4. Treat the risk

Once the worst risks come to light, dispatch your treatment plan. While you can’t anticipate every risk, the previous steps of your risk management process should have you set up for success. Starting with the highest priority risk first, task your team with either solving or at least mitigating the risk so that it’s no longer a threat to the project.

Effectively treating and mitigating the risk also means using your team's resources efficiently without derailing the project in the meantime. As time goes on and you build a larger database of past projects and their risk logs, you can anticipate possible risks for a more proactive rather than reactive approach for more effective treatment.

5. Monitor the risk

Clear communication among your team and stakeholders is essential when it comes to ongoing monitoring of potential threats. Send regular project updates to the team and other stakeholders. Check in with your risk managers individually to ensure there aren’t any red flags popping up throughout the project.

Be sure to actively maintain the risk register—it should be a living document that you and your team refer to often. As risks change or evolve, those should be updated in the log for everyone to see. That way, everyone can stay on the same page and respond to risks faster and more proactively.   While it may feel like you're herding cats sometimes, with your risk management plan and its corresponding project risk register in place, keeping tabs on those moving targets becomes anything but risky business.

Be better prepared and implement a complete risk management strategy.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

Related articles

An overview of business contingency plans.

Many circumstances have the potential to disrupt your business, but you can prepare for potential disaster with a business contingency plan. Read over the steps and check out our templates to build out your own plan.

A complete guide to the risk assessment process

Identify and prepare for potential risks in your workplace. This article explains what the risk assessment process is and how you can start your own in five simple steps (including free templates!).

Bring your bright ideas to life.

or continue with

By registering, you agree to our Terms of Service and you acknowledge that you have read and understand our Privacy Policy .

• Become an Advisor
• Get started

How to Improve Your Problem Solving Skills as a VP of Risk Management

Learn how VPs of Risk Management can enhance their problem-solving skills with these effective techniques.

As a VP of Risk Management, you are responsible for identifying and managing risks that may be harmful to your organization. The ability to solve problems effectively is a crucial skill for any manager in this position. In this article, we will explore various ways to improve your problem-solving skills and advance your career as a VP of Risk Management.

Understanding the Role of a VP of Risk Management

A VP of Risk Management plays a crucial role in an organization's risk management strategy. You are responsible for developing and implementing policies and procedures that help identify, evaluate, and manage potential risks that could impact your organization's goals and objectives.

As a VP of Risk Management, you are responsible for overseeing the entire risk management process. This includes identifying potential risks, assessing their likelihood and impact, and developing strategies to mitigate them. You will work closely with other departments within the organization, including legal, finance, and operations, to ensure that risks are identified and managed effectively.

Key Responsibilities and Expectations

As a VP of Risk Management, your key responsibilities include managing risks that could affect your organization's reputation, financial stability, and regulatory compliance. You must oversee the development of a comprehensive risk management program that includes risk identification, assessment, and mitigation strategies.

In addition to managing risks, you are also responsible for communicating with senior management and the board of directors about the organization's risk management strategy. You must ensure that they understand the risks the organization faces and the steps being taken to mitigate them.

You also need to ensure that your organization complies with all relevant laws, regulations, and industry standards. This requires staying up-to-date with industry trends and best practices to mitigate risks effectively.

The Importance of Problem Solving in Risk Management

As a VP of Risk Management, you need to develop strong problem-solving skills to identify and assess potential risks accurately. You are also responsible for creating and executing effective risk mitigation plans, which require critical thinking and analytical skills.

The ability to solve complex problems quickly and efficiently is therefore essential to your success in this role. By improving your problem-solving skills, you can help your organization mitigate risks effectively and achieve its strategic objectives.

Effective risk management requires a proactive approach to identifying and mitigating potential risks. This means that you must be able to anticipate potential risks before they occur and develop strategies to mitigate them. You must also be able to adapt to changes in the business environment and adjust your risk management strategy accordingly.

Finally, it is important to remember that risk management is an ongoing process. As a VP of Risk Management, you must continually monitor the organization's risk management program and make adjustments as necessary. By doing so, you can help your organization stay ahead of potential risks and achieve its long-term goals and objectives.

Developing a Strong Foundation in Problem Solving

As a VP of Risk Management, you play a crucial role in identifying, analyzing, and mitigating potential risks that could impact your organization. To be successful in this role, you need to develop a strong foundation in critical thinking, analytical techniques, and emotional intelligence. Here are some ways to enhance these skills:

Enhancing Critical Thinking Skills

Developing critical thinking skills involves analyzing information objectively, evaluating the data for accuracy and relevance, and making sound judgments based on the evidence. To improve your critical thinking skills, consider taking online courses, attending workshops, or reading books on the subject. You can also seek mentorship from colleagues who possess strong critical thinking skills.

One effective way to enhance your critical thinking skills is to practice analyzing complex situations and making informed decisions based on the available data. This will help you develop a more objective and analytical mindset, which is essential for effective problem-solving.

Mastering Analytical and Quantitative Techniques

As a VP of Risk Management, you must be able to analyze large volumes of data quickly and efficiently. This requires mastering analytical and quantitative techniques, such as statistical analysis, data modeling, and simulation.

To enhance your skills in this area, consider taking online courses or attending workshops on data analytics. You can also seek mentorship from colleagues who have advanced skills in data analytics. Additionally, it is important to stay up to date with the latest technological advancements in the field of data analytics.

Building Emotional Intelligence and Interpersonal Skills

Effective problem-solving in Risk Management requires more than analytical and quantitative skills. You must also possess strong emotional intelligence and interpersonal skills, including empathy, active listening, and effective communication.

To improve your emotional intelligence and interpersonal skills, consider taking courses in emotional intelligence, improving social skills, and effective communication. Practice active listening and empathy with your colleagues to build better relationships and collaborative problem-solving skills. Additionally, seek opportunities to work on cross-functional projects to build your teamwork and collaboration skills.

By developing a strong foundation in critical thinking, analytical techniques, and emotional intelligence, you can become a more effective VP of Risk Management and help your organization navigate potential risks with confidence.

Implementing Effective Risk Management Strategies

Effective risk management is crucial for any organization to achieve its goals and objectives. As a VP of Risk Management, you play a critical role in identifying, assessing, and mitigating potential risks that could impact your organization's success. Here are some ways to achieve this:

Identifying and Assessing Potential Risks

The first step in any risk management strategy is to identify and assess potential risks. This involves analyzing internal and external factors that could impact your organization's goals and objectives.

One way to identify potential risks is to conduct a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. This analysis helps you identify internal factors that can impact your organization's success, such as a lack of resources or skills. It also helps you identify external factors, such as changes in the market or regulatory environment, that can impact your organization's success.

Another tool you can use to identify potential risks is a PESTLE analysis, which stands for political, economic, sociocultural, technological, legal, and environmental factors. This analysis helps you identify external factors that can impact your organization's success, such as changes in government regulations or advancements in technology.

Once you have identified potential risks, you can use a risk assessment framework to assess the likelihood and impact of each risk. This helps you prioritize risks and determine which ones require immediate attention.

Designing and Executing Risk Mitigation Plans

Once you have identified and assessed potential risks, you need to design and execute risk mitigation plans. This involves developing strategies to minimize or eliminate potential risks.

You can use a variety of tools and techniques to develop risk mitigation plans, including risk transfer, avoidance, acceptance, or reduction. Risk transfer involves transferring the risk to another party, such as an insurance company. Risk avoidance involves avoiding the activity that creates the risk. Risk acceptance involves accepting the risk and developing a contingency plan. Risk reduction involves reducing the likelihood or impact of the risk.

It's essential to document these plans and regularly monitor them to ensure they remain effective. This requires strong communication skills to ensure that all relevant stakeholders are aware of the risk mitigation plans and their roles in executing them.

Monitoring and Adjusting Strategies as Needed

Risk management is an ongoing process that requires constant monitoring and adjustment. As a VP of Risk Management, you need to monitor your risk mitigation strategies regularly and ensure that they remain effective.

If you identify any new risks, you need to adjust your strategies accordingly. This requires strong problem-solving skills to quickly identify and address any issues that arise. It's also essential to communicate any changes in risk mitigation strategies to all relevant stakeholders to ensure that everyone is aware of the changes and their roles in executing them.

In conclusion, implementing effective risk management strategies is crucial for any organization to achieve its goals and objectives. By identifying and assessing potential risks, designing and executing risk mitigation plans, and monitoring and adjusting strategies as needed, you can help your organization navigate the complex and ever-changing business environment.

Fostering a Culture of Problem Solving and Innovation

Building a resilient organization that can mitigate risks effectively requires more than just a set of policies and procedures. It requires a culture of problem-solving and innovation that empowers employees to think creatively and come up with new solutions to challenges as they arise.

Here are some additional strategies you can use to foster a culture of problem-solving and innovation in your organization:

Encouraging Open Communication and Collaboration

Open communication and collaboration are essential to creating a culture of problem-solving and innovation. When employees feel comfortable sharing their ideas and perspectives, they are more likely to come up with creative solutions to challenges. To encourage open communication and collaboration:

• Hold regular team meetings where everyone has the opportunity to share their thoughts and ideas
• Encourage feedback and suggestions from your employees, and be open to incorporating their ideas into your risk management strategy
• Implement an open-door policy that allows everyone to contribute their ideas and thoughts, regardless of their position within the organization

Providing Training and Development Opportunities

Providing your employees with training and development opportunities is essential to promoting problem-solving and innovation. Training and development programs can help your employees develop new skills and knowledge, enhancing their problem-solving abilities. To provide effective training and development opportunities:

• Identify areas where your employees need additional training or support
• Offer a variety of training programs, including workshops, seminars, and online courses
• Encourage employees to attend conferences and networking events to learn about new trends and best practices in risk management

Recognizing and Rewarding Creative Solutions

Recognizing and rewarding your employees' creative solutions is a powerful way to promote a culture of problem-solving and innovation. When employees know that their contributions are valued and appreciated, they are more likely to continue thinking creatively and coming up with new solutions. To recognize and reward creative solutions:

• Implement a rewards and recognition program that acknowledges and rewards employees who come up with innovative solutions to mitigate risks
• Publicly recognize employees who have contributed to the success of your risk management strategy
• Offer incentives such as bonuses or promotions to employees who consistently demonstrate a commitment to problem-solving and innovation

By implementing these strategies, you can create a culture of problem-solving and innovation that will help your organization mitigate risks effectively and thrive in an ever-changing business landscape.

To be a successful VP of Risk Management, you need to possess strong problem-solving skills. Improving your critical thinking, analytical and quantitative techniques, and emotional intelligence will help you mitigate risks more effectively.

You can also foster a culture of problem-solving and innovation by encouraging open communication and collaboration, providing training and development opportunities, and recognizing and rewarding creative solutions.

By following these strategies, you will advance your career as a VP of Risk Management and help your organization achieve its strategic objectives.

Ready to join an advisory board?

• A VP of Risk Management is responsible for identifying and managing risks that may be harmful to an organization, including developing and implementing policies and procedures to identify, evaluate, and manage potential risks.
• A VP of Risk Management is responsible for managing risks that could affect an organization's reputation, financial stability, and regulatory compliance. They must oversee the development of a comprehensive risk management program that includes risk identification, assessment, and mitigation strategies. They also need to ensure that their organization complies with all relevant laws, regulations, and industry standards.
• Problem-solving is important in risk management because it allows a VP of Risk Management to identify and assess potential risks accurately, and develop and execute effective risk mitigation plans. It also helps them anticipate potential risks before they occur and adapt to changes in the business environment.
• A VP of Risk Management can enhance their critical thinking skills by taking online courses, attending workshops, or reading books on the subject. They can also seek mentorship from colleagues who possess strong critical thinking skills. To enhance their analytical and quantitative skills, they can take online courses or attend workshops on data analytics and stay up to date with the latest technological advancements in the field. Improving social skills, effective communication, and empathy can also develop emotional intelligence.
• A culture of problem-solving and innovation can be fostered in an organization by encouraging open communication and collaboration, providing training and development opportunities, and recognizing and rewarding creative solutions. This helps employees feel comfortable sharing their ideas and perspectives, develop new skills and knowledge, and know that their contributions are valued and appreciated.

Join an Advisory Board

Connect with companies needing your expertise

See what boards you're qualified for

See what you qualify for with our 2-minute assessment

Similar Articles

How to Improve Your Active Listening Skills as a VP of Legal or VP of General Counsel

How to Improve Your Analytical Skills as a Chief Customer Officer

How to Improve Your Conflict Resolution Skills as a VP of Communications

How to Improve Your Problem Solving Skills as a VP of Communications

How to Improve Your Problem-Solving Skills as a VP of Sustainability

How to Improve Your Project Management Skills as a Chief Technology Officer

How to Improve Your Time Management Skills as a VP of Procurement

How to Improve Your Project Management Skills as a Chief Information Officer

How to Improve Your Problem Solving Skills as a VP of Marketing

How to Improve Your Customer Service Skills as a Chief Administrative Officer

How to Improve Your Leadership Skills as a General Counsel

How to Improve Your Analytical Skills as a Chief Human Resources Officer

How to Improve Your Teamwork Skills as a Chief Sustainability Officer

How to Improve Your Decision Making Skills as a VP of Technology

How to Improve Your Adaptability Skills as a Chief Operating Officer

Start an advisorycloud.

Join an advisory board

• Product overview
• All features
• App integrations

CAPABILITIES

• project icon Project management
• Project views
• Custom fields
• Status updates
• goal icon Goals and reporting
• Reporting dashboards
• workflow icon Workflows and automation
• portfolio icon Resource management
• Time tracking
• my-task icon Admin and security
• Admin console
• asana-intelligence icon Asana AI
• list icon Personal
• premium icon Starter
• briefcase icon Advanced
• Goal management
• Organizational planning
• Campaign management
• Creative production
• Content calendars
• Marketing strategic planning
• Resource planning
• Project intake
• Product launches
• Employee onboarding
• View all uses arrow-right icon
• Project plans
• Team goals & objectives
• Team continuity
• Meeting agenda
• View all templates arrow-right icon
• Work management resources Discover best practices, watch webinars, get insights
• What's new Learn about the latest and greatest from Asana
• Customer stories See how the world's best organizations drive work innovation with Asana
• Help Center Get lots of tips, tricks, and advice to get the most from Asana
• Asana Academy Sign up for interactive courses and webinars to learn Asana
• Developers Learn more about building apps on the Asana platform
• Community programs Connect with and learn from Asana customers around the world
• Events Find out about upcoming events near you
• Partners Learn more about our partner programs
• Support Need help? Contact the Asana support team
• Asana for nonprofits Get more information on our nonprofit discount program, and apply.

Featured Reads

• Business strategy |
• Problem management: 8 steps to better p ...

Problem management: 8 steps to better problem solving

Problem management is an 8 step framework most commonly used by IT teams. You can use problem management to solve for repeating major incidents. By organizing and structuring your problem solving, you can more effectively get to the root cause of high-impact problems—and devise a solution. Solving the root cause prevents recurrence and creates a repeatable solution to use on similar errors in the future.

In an IT department, errors and mishaps are part of the job. You can't always control these problems, but you can control how you respond to them with problem management. Problem management helps you solve larger problems and reduce the risk that they’ll happen again by identifying all connected problems, solving them, and planning for the future.

What is problem management?

Problem management is an 8 step framework most commonly used by IT teams. Your team can use problem management to solve for repeating major incidents. By organizing and structuring your problem solving, you can more effectively get to the root cause of high-impact problems—and devise a solution. Problem management is a process—used mostly by IT teams—to identify, react, and respond to issues. It’s not for every problem, but it’s a useful response when multiple major incidents occur that cause large work interruptions. Unlike problem solving, problem management goes beyond the initial incident to discover and dissect the root causes, preventing future incidents with permanent solutions.

The goals of problem management are to:

Prevent problems before they start.

Solve for repetitive errors.

Lessen each incident’s impact. 

Problem management vs. incident management 

Example: Someone leaves their unprotected laptop in a coffee shop, causing a security breach. The security team can use incident management to solve for this one, isolated event. In this case, the team could manually shut down the accounts connected to that laptop. If this continues to happen, IT would use problem management to solve the root of this issue—perhaps installing more security features on each company laptop so that if employees lose them, no one else can access the information.

Problem management vs. problem solving

While similar in name, problem management differs slightly from problem-solving. Problem management focuses on every aspect of the incident—identifying the root cause of the problem, solving it, and prevention. Problem solving is, as the name implies, focused solely on the solution step. 

Example: You’re launching a new password management system when it crashes—again. You don’t know if anything leaked, but you know it could contain confidential information. Plus, it’s happened before. You start the problem management process to ensure it doesn’t happen again. In that process, you’ll use problem solving as a step to fix the issue. In this case, perhaps securing confidential information before you try to launch a new software.

Problem management vs. change management 

Change management targets large transitions within your workplace, good and bad. These inevitable changes aren’t always negative, so you can’t always apply problem management as a solution. That’s where change management comes in—a framework that helps you adjust to any new scenario.

Example: Your company is transitioning to a new cloud platform. The transition happens incident-free—meaning you won’t need problem management—but you can ease the transition by implementing some change management best practices. Preparing and training team members in the new software is a good place to start.

Problem management vs. project management

Project management is the framework for larger collections of work. It’s the overarching method for how you work on any project, hit goals, and get results. You can use project management to help you with problem management, but they are not the same thing. Problem management and project management work together to solve issues as part of your problem management process.

Example: During problem management, you uncover a backend security issue that needs to be addressed—employees are using storage software with outdated security measures. To solve this, you create a project and outline the tasks from start to finish. In this case, you might need to alert senior executives, get approval to remove the software, and alert employees. You create a project schedule with a defined timeline and assign the tasks to relevant teams. In this process, you identified a desired outcome—remove the unsafe software—and solved it. That’s project management.

The 8 steps of problem management

It’s easy to get upset when problems occur. In fact, it’s totally normal. But an emotional response is not always the best response when faced with new incidents. Having a reliable system—such as problem management—removes the temptation to respond emotionally. Proactive project management gives your team a framework for problem solving. It’s an iterative process —the more you use it, the more likely you are to have fewer problems, faster response times, and better outputs. 

1. Identify the problem

During problem identification, you’re looking at the present—what’s happening right now? Here, you’ll define what the incident is and its scale. Is this a small, quick-fix, or a full overhaul? Consider using problem framing to define, prioritize, and understand the obstacles involved with these more complex problems. 

2. Diagnose the cause

Use problem analysis or root cause analysis to strategically look at the cause of a problem. Follow the trail of issues all the way back to its beginnings.

To diagnose the underlying cause, you’ll want to answer:

What factors or conditions led to the incident?

Do you see related incidents? Could those be coming from the same source?

Did someone miss a step? Are processes responsible for this problem?

3. Organize and prioritize

Now it’s time to build out your framework. Use an IT project plan to organize information in a space where everyone can make and see updates in real time. The easiest way to do this is with a project management tool where you can input ‌tasks, assign deadlines, and add dependencies to ensure nothing gets missed. To better organize your process, define:

What needs to be done? 

Who’s responsible for each aspect? If no one is, can we assign someone? 

When does each piece need to be completed?

What is the final number of incidents related to this problem?

Are any of these tasks dependent on another one? Do you need to set up dependencies ?

What are your highest priorities? How do they affect our larger business goals ? 

How should you plan for this in the future?

4. Create a workaround

If the incident has stopped work or altered it, you might need to create a workaround. This is not always necessary, but temporary workarounds can keep work on track and avoid backlog while you go through the problem management steps. When these workarounds are especially effective, you can make them permanent processes.

5. Update your known error database

Every time an incident occurs, create a known error record and add it to your known error database (KEDB). Recording incidents helps you catch recurrences and logs the solution, so you know how to solve similar errors in the future. 

6. Pause for change management (if necessary)

Larger, high-impact problems might require change management. For example, if you realize the problem’s root cause is a lack of staff, you might dedicate team members to help. You can use change management to help them transition their responsibilities, see how these new roles fit in with the entire team, and determine how they will collaborate moving forward.

7. Solve the problem

This is the fun part—you get to resolve problems. At this stage, you should know exactly what you’re dealing with and the steps you need to take. But remember—with problem management, it’s not enough to solve the current problem. You’ll want to take any steps to prevent this from happening again in the future. That could mean hiring a new role to cover gaps in workflows , investing in new softwares and tools, or training staff on best practices to prevent these types of incidents.

Read: Turn your team into skilled problem solvers with these problem-solving strategies

8. Reflect on the process

The problem management process has the added benefit of recording the process in its entirety, so you can review it in the future. Once you’ve solved the problem, take the time to review each step and reflect on the lessons learned during this process. Make note of who was involved, what you needed, and any opportunities to improve your response to the next incident. After you go through the problem management process a few times and understand the basic steps, stakeholders, workload, and resources you need, create a template to make the kickoff process easier in the future.

5 benefits of problem management

Problem management helps you discover every piece of the problem—from the current scenario down to its root cause. Not only does this have an immediate positive impact on the current issue at hand, it also promotes collaboration and helps to build a better product overall. 

Here are five other ways ‌problem management can benefit your team:

Avoids repeat incidents. When you manage the entire incident from start to finish, you will address the foundational problems that caused it. This leads to fewer repeat incidents.

Boosts cross-functional collaboration. Problem management is a collaborative process. One incident might require collaboration from IT, the security team, and legal. Depending on the level of the problem, it might trickle all the way back down to the product or service team, where core changes need to be made.

Creates a better user experience. It’s simple—the fewer incidents you have, the better your customer’s experience will be. Reducing incidents means fewer delays, downtime, and frustrations for your users, and a higher rate of customer satisfaction.

Improves response time. As you develop a flow and framework with a project management process, you’ll be better equipped to handle future incidents—even if they’re different scenarios.

Organizes problem solving. Problem management provides a structured, thoughtful approach to solving problems. This reduces impulsive responses and helps you keep a better problem record of incidents and solutions.

Problem management leads to better, faster solutions

IT teams will always have to deal with incidents, but they don’t have to be bogged down by them. That’s because problem management works. Whether you employ a full problem management team or choose to apply these practices to your current IT infrastructure, problem management—especially when combined with a project management tool—saves you time and effort down the road.

With IT project plans, we’ve made it easier than ever to track your problem management work in a shared tool. Try our free IT project template to see your work come together, effortlessly.

Related resources

How Asana streamlines strategic planning with work management

How to create a CRM strategy: 6 steps (with examples)

What is management by objectives (MBO)?

Write better AI prompts: A 4-sentence framework

Accendo Reliability

Your Reliability Engineering Professional Development Site

by Greg Hutchins Leave a Comment

Risk Based Problem Solving and Decision Making

All organizations regardless if they are public or private, for profit or not for profit, large or small face uncertainty.  Uncertainty results in risks.  More organizations will face uncertainty in the design, implementation, and assurance of their Quality Management System (QMS), Environmental Management System (EMS), Information Security Management System (ISMS), and most ISO management systems.  The critical organizational challenge over the next decade is how organizations will address and treat the risks that result from the uncertainty.  ISO 31000:2018 was developed to address this growing uncertainty.

Volatility – Uncertainty – Complexity –  Ambiguity

We live in a time of Volatility, Uncertainty, Complexity, and Ambiguity (VUCA).  We call this VUCA time.  There are many implications to the statement.     In terms of ISO 31000:2018 and ISO 9001:2015, the concept of ‘uncertainty’ is integrated throughout the standards.

The concept of uncertainty is fundamental to ISO 31000:2018 and its supporting standards.   The nature, extent, and degree of uncertainty to solve problems and to make accurate and reliable decisions are based on the availability of data and information.

Risk Based Problem Solving (RBPS) and Risk Based Decision Making (RBDM) are two risk management tools that can be used with ISO 31000 to address VUCA.   RBPS and RBDM involve evaluating:

• Assumptions used in the analysis and decision.
• Inputs into the risk analysis.
• Process used to conduct the risk analysis.
• Different interpretations of the analysis, data, and information.
• Different understanding and application of the term ‘context.’
• Differing abilities among risk analysts.
• Different application of the methods for conducting the risk assessment .
• Lack of precision and variability in the results.

Greg Hutchins PE and CERM (503.233.101 & [email protected] )  is the founder of:

CERMAcademy.com 800Compete.com QualityPlusEngineering.com WorkingIt.com

He is the evangelist behind Future of Quality: Risk®.  He is currently working on the Future of Work and machine learning projects.

About Greg Hutchins

Greg Hutchins PE CERM is the evangelist of Future of Quality: Risk®. He has been involved in quality since 1985 when he set up the first quality program in North America based on Mil Q 9858 for the natural gas industry. Mil Q became ISO 9001 in 1987

He is the author of more than 30 books. ISO 31000: ERM is the best-selling and highest-rated ISO risk book on Amazon (4.8 stars). Value Added Auditing (4th edition) is the first ISO risk-based auditing book.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses cookies to give you a better experience, analyze site traffic, and gain insight to products or offers that may interest you. By continuing, you consent to the use of cookies. Learn how we use cookies, how they work, and how to set your browser preferences by reading our  Cookies Policy .

• Get IGI Global News

• All Products
• Book Chapters
• Journal Articles
• Video Lessons
• Teaching Cases
• Recommend to Librarian
• Recommend to Colleague
• Fair Use Policy

• Access on Platform

Export Reference

• Advances in Logistics, Operations, and Management Science
• e-Book Collection
• Business and Management e-Book Collection
• Government and Law e-Book Collection
• Business Knowledge Solutions e-Book Collection
• e-Book Collection Select

Problem Solving and Risk Management Methodology: Feedback From Experiences With the Use of Taxonomies

Introduction.

The introduction of new technologies and incursion into new markets presents organizations with relevant challenges and risks that endanger their effectiveness and efficiency. Given this, methodologies aimed at dealing with problems and their risks, to prevent them and hopefully eliminate them, become that much more important. In this sense, it is useful to have scientific rigor methods that help to define actions geared towards valid and reliable results.

The close relationship between a “problem” and a “risk” can be explained as follows: A “problem” is an unwanted event in the present that may negatively impact the course of action, while a “risk” points to a possible problem in the immediate future. In this sense, Figure 1 describes risk management before developing the problem and risk management after the fact. It shows that detected risks can more easily be prevented in the future.

To address these events, two methods are commonly used by organizations: the Failure mode s and effect s analysis (FMEA), and the 8 Disciplines (8'D). The FMEA is characterized by being a simple yet effective procedure for the analysis of potential failures. This process uses a knowledge base to encode and classify the external and internal agents that can cause disruptions and then identifies their probability of occurrence. It also ranks inherent risks in order of importance to find out the priority of the risk and to eliminate or mitigate its impact. After the global review, treatment actions are designed (Qin, Xi & Pedrycz, 2020).

When the problem has already occurred, the 8'D methodology is adopted using a series of eight steps to solve the problem. This methodology allows experts to contextualize the occurrence and provide a temporal solution response to avoid further damage. Afterward, a cause analysis is performed that helps to propose solutions for the problem; then they are implemented and validated. This methodology focuses on identifying the origin of the adverse event based on a root cause analysis (Štofová & Szaryszová, 2017). To maximize poetentialize the two methods, this article proposes a methodological approach as a “feedback” process that capitalizes on an organization's experiences as a knowledge management system based on its members´ expertise. The managed knowledge is composed of the events resolved in the past, also known as training cases. For the reuse of these cases the four stages of Case- Based Reasoning are followed (Schott, Lederer, Eigner. & Bodendorf, 2020). These stages enable organizations to solve a current problem under the reuse of the experience of similar past issues.

Key Terms in this Chapter

Risk : A risk is an event in the present that will become a problem in the future.

Taxonomic Classification : This classification is based on a semantic similarity of events, in which problems or risks can be recognized from their more specific characteristics.

Exploitation of Information : Making available and promoting the use of experiences and knowledge to support the decision-making of the current process.

Problem : It is an event in the future who was at risk in the past.

Semantic Similarity : Is a measure of how similar a pair of concepts are (for example event A and event B). The similarity between A and B is related to aspects they share in common.

Capitalization of Information : Refers to locating, collecting, and storing the relative information of an experience.

Semantic Measurement : Is done by knowing the different or similar characteristics between events.

Treatment of Information : Includes the creation of new knowledge or the updating of previous ones based on the generalization of the incidents recorded.

Complete Chapter List

• Contact sales

Start free trial

The Risk Management Process in Project Management

When you start the planning process for a project, one of the first things you need to think about is: what can go wrong? It sounds negative, but pragmatic project managers know this type of thinking is preventative. Issues will inevitably come up, and you need a mitigation strategy in place to know how to manage risks when project planning .

But how do you work towards resolving the unknown? It sounds like a philosophical paradox, but don’t worry—there are practical steps you can take. In this article, we’ll discuss strategies that let you get a glimpse at potential risks, so you can identify and track risks on your project.

What Is Risk Management on Projects?

Project risk management is the process of identifying, analyzing and responding to any risk that arises over the life cycle of a project to help the project remain on track and meet its goal. Risk management isn’t reactive only; it should be part of the planning process to figure out the risk that might happen in the project and how to control that risk if it in fact occurs.

A risk is anything that could potentially impact your project’s timeline, performance or budget. Risks are potentialities, and in a project management context, if they become realities, they then become classified as “issues” that must be addressed with a risk response plan . So risk management, then, is the process of identifying, categorizing, prioritizing and planning for risks before they become issues.

Risk management can mean different things on different types of projects. On large-scale projects, risk management strategies might include extensive detailed planning for each risk to ensure mitigation strategies are in place if project issues arise. For smaller projects, risk management might mean a simple, prioritized list of high, medium and low-priority risks.

Get your free

Risk Matrix Template

Use this free Risk Matrix Template for Excel to manage your projects better.

How to Manage Project Risk

To begin managing risk, it’s crucial to start with a clear and precise definition of what your project has been tasked to deliver. In other words, write a very detailed project charter , with your project vision, objectives, scope and deliverables. This way risks can be identified at every stage of the project. Then you’ll want to engage your team early in identifying any and all risks.

Don’t be afraid to get more than just your team involved to identify and prioritize risks, too. Many project managers simply email their project team and ask to send them things they think might go wrong on the project. But to better plot project risk, you should get the entire project team, your client’s representatives, and vendors into a room together and do a risk identification session.

With every risk you define, you’ll want to log it somewhere—using a risk tracking template helps you prioritize the level of risk. Then, create a risk management plan to capture the negative and positive impacts of the project and what actions you will take to deal with them. You’ll want to set up regular meetings to monitor risk while your project is ongoing. Transparency is critical.

Project management software can help you keep track of risk. ProjectManager is online software that helps you identify risks, track them and calculate their impact. With our Risk view, you can make a risk list with your team and stay on top of all the risks within your project. Write a description, add tags, identify a resolution, mark impact and likelihood, even see a risk matrix—all in one place. Get started today with a free trial.

What Is Positive Risk In Project Management?

Not all risk is created equally. Risk can be either positive or negative, though most people assume risks are inherently the latter. Where negative risk implies something unwanted that has the potential to irreparably damage a project, positive risks are opportunities that can affect the project in beneficial ways.

Negative risks are part of your risk management plan, just as positive risks should be, but the difference is in approach. You manage and account for known negative risks to neuter their impact, but positive risks can also be managed to take full advantage of them.

There are many examples of positive risks in projects: you could complete the project early; you could acquire more customers than you accounted for; you could imagine how a delay in shipping might open up a potential window for better marketing opportunities, etc. It’s important to note, though, that these definitions are not etched in stone. Positive risk can quickly turn to negative risk and vice versa, so you must be sure to plan for all eventualities with your team.

Managing Risk Throughout the Organization

Can your organization also improve by adopting risk management into its daily routine? Yes! Building a risk management protocol into your organization’s culture by creating a consistent set of risk management tools and templates, with training, can reduce overhead over time. That way, each time you start a new project, it won’t be like having to reinvent the wheel.

Things such as your organization’s records and history are an archive of knowledge that can help you learn from that experience when approaching risk in a new project. Also, by adopting the attitudes and values of your organization to become more aware of risk, your organization can develop a risk culture . With improved governance comes better planning, strategy, policy and decisions.

Free Risk Matrix Template

To manage project risks throughout your organization, it’s important to create a risk matrix. A risk matrix is going to help you organize your risks by severity and likelihood, so you can stay on top of potential issues that threaten the greatest impact. Try this free risk matrix template for Excel so you and your team can organize project risks.

6 Steps in the Risk Management Process

So, how do you handle something as seemingly elusive as project risk management? You make a risk management plan. It’s all about the process. Turn disadvantages into an advantage by following these six steps.

Identify the Risk

You can’t resolve a risk if you don’t know what it is. There are many ways to identify risk. As you do go through this step, you’ll want to collect the data in a risk register .

One way is brainstorming with your team, colleagues or stakeholders. Find the individuals with relevant experience and set up interviews so you can gather the information you’ll need to both identify and resolve the risks. Think of the many things that can go wrong. Note them. Do the same with historical data on past projects. Now your list of potential risks has grown.

Make sure the risks are rooted in the cause of a problem. Basically, drill down to the root cause to see if the risk is one that will have the kind of impact on your project that needs identifying. When trying to minimize risk, it’s good to trust your intuition. This can point you to unlikely scenarios that you just assume couldn’t happen. Use a risk breakdown structure process to weed out risks from non-risks.

Analyze the Risk

Analyzing risk is hard. There is never enough information you can gather. Of course, a lot of that data is complex, but most industries have best practices, which can help you with your risk analysis . You might be surprised to discover that your company already has a framework for this process.

When you assess project risk you can ultimately and proactively address many impacts, such as avoiding potential litigation, addressing regulatory issues, complying with new legislation, reducing your exposure and minimizing impact.

So, how do you analyze risk in your project? Through qualitative and quantitative risk analysis, you can determine how the risk is going to impact your schedule and budget.

Project management software helps you analyze risk by monitoring your project. ProjectManager takes that one step further with real-time dashboards that display live data. Unlike other software tools, you don’t have to set up our dashboard. It’s ready to give you a high-level view of your project from the get-go. We calculate the live date and then display it for you in easy-to-read graphs and charts. Catch issues faster as you monitor time, costs and more.

Prioritize Risks & Issues

Not all risks are created equally. You need to evaluate the risk to know what resources you’re going to assemble towards resolving it when and if it occurs.

Having a large list of risks can be daunting. But you can manage this by simply categorizing risks as high, medium or low. Now there’s a horizon line and you can see the risk in context. With this perspective, you can begin to plan for how and when you’ll address these risks. Then, if risks become issues, it’s advisable to keep an issue log so you can keep track of each of them and implement corrective actions.

Some risks are going to require immediate attention. These are the risks that can derail your project. Failure isn’t an option. Other risks are important, but perhaps do not threaten the success of your project. You can act accordingly. Then there are those risks that have little to no impact on the overall project’s schedule and budget . Some of these low-priority risks might be important, but not enough to waste time on.

Assign an Owner to the Risk

All your hard work identifying and evaluating risk is for naught if you don’t assign someone to oversee the risk. In fact, this is something that you should do when listing the risks. Who is the person who is responsible for that risk, identifying it when and if it should occur and then leading the work toward resolving it?

That determination is up to you. There might be a team member who is more skilled or experienced in the risk. Then that person should lead the charge to resolve it. Or it might just be an arbitrary choice. Of course, it’s better to assign the task to the right person, but equally important in making sure that every risk has a person responsible for it.

Think about it. If you don’t give each risk a person tasked with watching out for it, and then dealing with resolving it when and if it should arise, you’re opening yourself up to more risk. It’s one thing to identify risk, but if you don’t manage it then you’re not protecting the project.

Respond to the Risk

Now the rubber hits the road. You’ve found a risk. All that planning you’ve done is going to be put to use. First, you need to know if this is a positive or negative risk. Is it something you could exploit for the betterment of the project? If not you need to deploy a risk mitigation strategy .

A risk mitigation strategy is simply a contingency plan to minimize the impact of a project risk. You then act on the risk by how you prioritize it. You have communications with the risk owner and, together, decide on which of the plans you created to implement to resolve the risk.

Monitor the Risk

You can’t just set forces against risk without tracking the progress of that initiative. That’s where the monitoring comes in. Whoever owns the risk will be responsible for tracking its progress towards resolution. However, you’ll need to stay updated to have an accurate picture of the project’s overall progress to identify and monitor new risks.

You’ll want to set up a series of project meetings to manage the risks. Make sure you’ve already decided on the means of communication to do this. It’s best to have various channels dedicated to communication.

Whatever you choose to do, remember to always be transparent. It’s best if everyone in the project knows what is going on, so they know what to be on the lookout for and help manage the process.

In the video below, Jennifer Bridges, professional project manager (PMP) dives deeper into the steps in the risk management process.

Risk Management Templates

We’ve created dozens of free project management templates for Excel and Word to help you manage projects. Here are some of our risk management templates to help you as you go through the process of identifying, analyzing, prioritizing and responding to risks.

Risk Register Template

A risk register is a risk management document that allows project managers to identify and keep track of potential project risks. Using a risk register to list down project risks is one of the first steps in the risk management process and one of the most important because it sets the stage for future risk management activities.

A risk matrix is a project management tool that allows project managers to analyze the likelihood and potential impact of project risks. This helps them prioritize project risks and build a risk mitigation plan to respond to those risks if they were to occur.

Managing Risk With ProjectManager

Using a risk-tracking template is a start, but to gain even more control over your project risks you’ll want to use project management software. ProjectManager has a number of tools including risk management that let you address risks at every phase of a project.

Make an Online Risk Register

Identify and track all the risks for your project in one place. Unlike other project management software, you can manage risks alongside your project rather than in a separate tool. Set due dates, mark priority, identify resolutions and more.

Gantt Charts for Risk Management Plans

Use our award-winning Gantt charts to create detailed risk management plans to prevent risks from becoming issues. Schedule, assign and monitor project tasks with full visibility. Gantt charts allow team members add comments and files to their assigned tasks, so all the communication happens on the project level—in real time.

Risk management is complicated. A risk register or template is a good start, but you’re going to want robust project management software to facilitate the process of risk management. ProjectManager is an online tool that fosters the collaborative environment you need to get risks resolved, as well as provides real-time information, so you’re always acting on accurate data. Try it yourself and see, take this free 30-day trial.

Deliver your projects on time and on budget

Start planning your projects.

Data Topics

• Data Architecture
• Data Literacy
• Data Science
• Data Strategy
• Data Modeling
• Governance & Quality
• Data Education
• Data Modeling News, Articles, & Education

Solving the Right Problem: A Case Study in Risk Management

Click to learn more about author Steve Zagoudis. “Successful problem solving requires finding the right solution to the right problem. We fail more often because we solve the wrong problem than because we get the wrong solution to the right problem.” – Russell L. Ackoff [1] Managing risk starts with identifying and solving the right […]

Click to learn more about author Steve Zagoudis.

“Successful problem solving requires finding the right solution to the right problem. We fail more often because we solve the wrong problem than because we get the wrong solution to the right problem.” – Russell L. Ackoff [1]

Companies use sophisticated modeling tools to forecast the value of their assets or liabilities some 20 to 30 years into the future. They are working to determine their future cash flows, including projected interest income or expense. Typically, multiple scenarios are employed using different interest rates along with assigned probabilities. This allows executives to plan accordingly. This modeling consumes vast amounts of raw data, as is the case in a financial institution.

There are three major components of interest rate projection models that can influence the accuracy of the results:

1. Quality and sophistication of the modeling tool 2. Model Risk scenarios and basic assumptions used for the model run 3. Quality and accuracy of the data fed into the model

Our client institution had received a Matter Requiring Attention (MRA) from their regulator, giving them several months to remediate the issue and report back. The client’s Model Risk team was convinced the variations were caused by the modeling tool. They proceeded to utilize a different tool and reran the tests — at the cost of millions of dollars and months of effort. The problem was not with the modeling tool.

Next, the team modified the basic scenarios and assumption sets used to run the model. The results showed vastly different answers, which was expected since they changed the underlying business rules. But alas, both modeling tools showed consistent unacceptable variations. The problem was not with their model assumptions.

We suspected the problem lay in the third component of the model — the quality and accuracy of the underlying data that was fed into the model. My mentor and first employer at Standard Oil was a huge fan of Gane and Sarson Data Flow diagrams (DFDs). Whenever we started a project at Standard Oil, our first task was to draw a Level 0 DFD, putting the system in question in the middle of the page and showing all data flows in and out.

We created this DFD diagram at the start of the project to help us understand the scope of the data feeds into the model. It turned out this institution had multiple copies of their commercial loans scattered across different systems and data warehouses. Market Risk defined each of the model runs using data from different systems, assuming all copies of the data were the same. They were not. Thus, the right problem was identified and rectified. The new results were validated and reported to the regulators.

We subsequently gave the client recommendations for new information governance procedures and technical solutions to mitigate data risk going forward. The goal was to provide new confidence in interest rate forecasts. Not only was the immediate problem solved, but our approach helped to future-proof this critical part of the client’s business. Unfortunately for this company, the same problem of data inconsistency with their financial models surfaced again in their financial reporting and public disclosures, triggering new regulatory and audit issues.

Even in this advanced information age, institutions continue to operate without the full knowledge of their true sources and quality of data , which makes it difficult to know if they are solving the right problem. We developed the Reconciliation Control Framework® for this type of situation. In very simple terms, it answers the key basic question, does A = B = C? Our framework is an example of data triangulation. According to BetterEvaluation :

“Triangulation facilitates validation of data through cross verification from more than two sources. It tests the consistency of findings obtained through different instruments and increases the chance to control, or at least assess, some of the threats or multiple causes influencing our results.”

In the case of our client, the InfoCheck TM control reconciled the loan data across the multiple systems, proving day in and day out that A=B=C was offering a permanent reduction in enterprise risk.

With the works of those like Russell Ackoff, Gane and Sarson, and so many others as guidance, it is possible to identify and solve the right problems.

In the next blog in this series, we will complete the remaining sections of the Data Governance policy .

[1] Ackoff, R. L.: 1974, Redesigning the Future: A Systems Approach to Societal Problems (John Wiley & Sons, New York)

Leave a Reply Cancel reply

You must be logged in to post a comment.

• Thought Leadership

Principles of risk management explained

Following principles of risk management can help your organisation manage risk in the best possible way. This is important to ensure that your organization is protected from the various threats that it may face. It’s also important because, if done well, risk management can create opportunities for your business.

Applicable for all types of organisations, the ISO 31000 standard provides useful guidelines for managing risk. One way it does this is with the ISO 31000 risk management principles . This blog outlines what the ISO 31000 risk management principles are and the benefits of following principles of risk management

Let’s get into it.

What are the principles of risk management?

The ISO 31000 risk management principles aim to help your organization improve how it manages risk, so that you can create and protect value in your organization . The principles also intend to make your risk management processes more efficient and effective.

Below, we explain the 8 principles of risk management that are outlined in the international standard .

• Integrated - Ensure that all of your organization’s activities make risk management a focus. Integrate it throughout your organization.
• Structured and comprehensive – To achieve consistent results, your approach to risk management needs to be well-organised and thorough. It can’t be haphazard or sloppy; this only leads to failures down the line.
• Customised – Every organization is different. Make sure that your risk management framework and process is tailored to your organization, the context in which it operates, and its objectives.
• Inclusive – Where appropriate, involve stakeholders in the risk management process. Stakeholders are defined as either a person or organization that can impact or be impacted by your decisions or activities. By considering their knowledge, views and perceptions, you can gain valuable insight to improve awareness and inform risk management.
• Dynamic – The risk landscape is constantly changing, as is your organization. Don’t get stuck in a rut. Your organization should be able to anticipate, identify, acknowledge and respond to all kinds of risks, whether they are new, changing, or no longer a concern. You must be able to do this quickly and appropriately.
• Best available information – A robust risk management process relies on past and present data, and anticipations for the future, as well as the limitations and uncertainties surrounding that information. What’s more, all information must be timely and accessible for stakeholders who need it.
• Human and cultural factors – Don’t forget about human behaviour and company culture, such as your organization’s capabilities and goals, or stakeholder objectives. Factors like these can significantly impact risk management, so you must recognize this within your risk management activities.
• Continual improvement – In life, there is always more to learn. The same is true for risk management. You should always be discovering new things and, through experience, your approach to risk management should continually improve.

The benefits of applying the principles of risk management

When principles of risk management are not followed, risk is often approached in a disorganized manner that can have spiralling consequences. For example, if a manufacturer does not check the quality of materials from a supplier, they risk creating a sub-standard product. This could then lead to recalls, replacements, refunds, machine downtime, delay in re-supply, and ongoing costs to reputation. The list goes on.

By applying the principles of risk management to your organization, it becomes easier to handle risks like the one just described. You can ensure that:

• Your approach to risk management is organized rather than chaotic – this can prevent failures and the higher costs associated with them, which protects the overall value of your organization
• Your organizational risks are managed more easily – poorly managed risks can often spread further than the initial risk failure and make matters worse
• Your reputation is protected – a poor reputation can result in less new business and a loss of existing customers, which can be avoided when risk is managed more effectively
• You can identify potential hazards – once identified, you can take action to mitigate the damage should the risk occur, or remove the risk completely
• You can identify possible opportunities – implementing these opportunities can add value in your organisation

Why not deepen your knowledge further?

Learn how to implement these principles in a risk management framework and maximise your risk management processes.

author.AuthorFullName

Dive into the future at frontier 2023.

Redefining what matters in regulated industries

Table of Contents

What are risk management tools, importance of risk management tools and techniques in mitigating risks, types of risk management tools, 15 risk management tools and techniques, what are the best risk management tools for small businesses, how often should risk assessments be conducted, can risk management tools predict future risks, how do regulatory changes impact risk management strategies, 15 risk management tools and techniques [2024].

Risk management tools and techniques are crucial in identifying, assessing, and mitigating risks in any project or organization. As we move into 2024, the risk management landscape continues to evolve, incorporating new technologies, methodologies, and strategies to ensure businesses can anticipate and navigate future uncertainties effectively. This article explores the essence of risk management tools, underscores their significance, and delves into the various tools available for organizations striving to safeguard their operations and enhance their decision-making processes.

Risk management tools are methodologies, software applications, and practices designed to identify, evaluate, and prioritize risks. They are followed by the coordinated application of resources to minimize, monitor, and control the probability or impact of unfortunate events. These tools encompass various functionalities, from risk assessment frameworks to financial and analytical software, that help organizations predict potential risks and implement effective mitigation strategies. The ultimate goal is to secure the organization's assets, ensure project success, and maintain the business's overall health.

The significance of risk management tools and techniques cannot be overstated. Managing risks effectively is necessary in an era of rapid technological advancements and global uncertainties. These tools provide several key benefits:

• Proactive Risk Identification: They enable organizations to identify potential risks early on, allowing for proactive measures rather than reactive responses.
• Informed Decision Making: These tools help make informed decisions by analyzing potential impacts and probabilities and balancing risks against rewards.
• Resource Optimization: They assist in allocating resources more effectively, prioritizing risks that pose the greatest threat.
• Compliance and Governance: Many tools ensure organizations comply with legal regulations and governance standards, reducing legal liabilities.
• Enhanced Communication: They foster better communication within teams and stakeholders by providing a common framework and language for discussing risks.

Become a Project Management Professional

• 6% Growth In Jobs Of Project Management Profiles By 2024
• 22 Million Jobs Estimated For Project Management Professionals By 2027

PMP® Certification Training

• Access to Digital Materials from PMI
• 12 Full-Length Simulation Test Papers (180 Questions Each)

Professional Certificate Program in Project Management

• Receive course completion Certificate in Project Management and Alumni Association Membership from UMass Amherst
• Expert Faculty: Learn from seasoned industry professionals and certified instructors who bring years of practical experience and expertise to the classroom

Here's what learners are saying regarding our programs:

Katrina Tanchoco

Shell - manila ,.

The interactive sessions make a huge difference as I'm able to ask for further clarifications. The training sessions are more engaging than the self-paced modules, it's easier now that i first decided to take up the online classroom training, and then followed it up with the self-paced learning (online and readings).

PHC Business Manager , Midlands and Lancashire Commissioning Support Unit

I wanted to transition into the Project Management field and wanted the right opportunity to do so. Thus, I took that leap forward and enrolled in this course. My learning experience was fantastic. It suited my learning style.

As the field of risk management expands, so does the variety of tools at an organization's disposal. Here are some key types of risk management tools that are prevalent in 2024:

• Risk Assessment Templates and Checklists: These are basic yet effective tools for identifying and recording potential risks in a structured format.
• Risk Analysis Software: Advanced software applications that use statistical models and simulations (like Monte Carlo simulations) to analyze risk scenarios and their potential impacts.
• Project Management Software: Integrated tools offering risk management features within a broader framework allow for seamless risk tracking alongside project milestones.
• Financial Risk Management Tools: These tools focus on identifying and mitigating risks related to financial operations, including market risk, credit risk, and liquidity risk.
• Enterprise Risk Management (ERM) Software: Comprehensive platforms that facilitate the identification, assessment, and management of risks across an entire organization, integrating risk management into corporate strategy.
• Compliance Management Tools: These tools are crucial for mitigating legal risks. They are designed to ensure that organizations meet legal and regulatory requirements.
• Disaster Recovery and Business Continuity Planning: Tools and software help create actionable plans to recover from disasters and ensure business continuity.
• Risk Intelligence Platforms: Leveraging artificial intelligence and machine learning, these platforms provide predictive insights into potential risks, allowing for more nuanced risk management strategies.
• Cybersecurity Assessment Tools: With the increasing threat of cyber attacks, these tools are essential for identifying vulnerabilities in an organization's digital infrastructure.
• Scenario Analysis Tools: These tools allow organizations to assess various hypothetical scenarios and their potential impacts, aiding in strategic planning and resilience building.

1. Probability and Impact Matrix

The Probability and Impact Matrix is a foundational tool used in risk management to evaluate and prioritize risks based on their likelihood of occurrence and potential impact on project objectives.

• Categorization of risks into a grid
• Prioritization based on predefined criteria
• Visual representation of risk severity
• Simplifies complex risk data
• Enhances decision-making
• Facilitates communication among stakeholders
• Requires subjective judgments
• May oversimplify complex risks

2. Risk Data Quality Assessment

This technique evaluates the reliability and credibility of risk data, ensuring that risk management decisions are based on accurate and high-quality information.

• Assessment of data source reliability
• Evaluation of data accuracy
• Identification of data limitations
• Improves the quality of risk analysis
• Reduces uncertainty in decision-making
• Identifies gaps in risk data
• Can be time-consuming
• Requires expertise to assess data quality

3. Risk Identification

Risk Identification determines risks that could affect a project's or organization's operations.

• Use of checklists, interviews, and brainstorming
• Documentation of identified risks
• Continuous throughout the project lifecycle
• Foundation for all risk management activities
• Encourages proactive risk management
• Engages all stakeholders
• Can be overwhelming if not prioritized
• Dependent on the experience of the participants

4. SWOT Analysis

SWOT Analysis is a strategic planning tool for identifying Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

• Examination of internal and external factors
• Strategic insights into business or project
• Facilitation of strategic planning
• Simple and versatile
• Promotes strategic thinking
• Identifies opportunities and threats
• May not prioritize issues
• Lacks detailed risk management

5. Risk Register

A Risk Register is a document that contains all information about identified risks, including their status and mitigation plans.

• Comprehensive list of risks
• Risk descriptions, impacts, and mitigation strategies
• Tracking of risk ownership and status
• Centralizes risk information
• Facilitates monitoring and control
• Enhances transparency and accountability
• Requires regular updating
• May become unwieldy with large projects

6. Root Cause Analysis

Root Cause Analysis is a problem-solving method for identifying the underlying causes of risks or issues rather than merely addressing their symptoms.

• Use of tools like the 5 Whys and Fishbone Diagram
• Identification of the primary cause of risk
• Implementation of long-term solutions
• Prevents recurrence of issues
• Encourages deep understanding of problems
• Focuses on corrective actions
• Time-consuming
• Requires experienced facilitators

7. Decision-making

Risk management decision-making involves choosing strategies to address identified risks and balancing costs and benefits.

• Analysis of alternatives
• Use of decision matrices or decision trees
• Stakeholder involvement in the decision process
• Facilitates informed choices
• Aligns risk response with strategic objectives
• Enhances stakeholder buy-in
• Can be subjective
• Potentially time-consuming consensus-building

8. Risk Acceptance

Risk Acceptance is a risk management strategy in which the decision is made to tolerate a risk's impact without taking active steps to mitigate it.

• Acknowledgment of risk without direct action
• Reserved for low-impact risks
• Inclusion in the risk register for monitoring
• Cost-effective for managing low-priority risks
• Reduces unnecessary efforts on minor issues
• Simplifies risk management process
• Requires careful consideration to avoid complacency
• Potential for overlooked cumulative effects

9. Risk Reassessment

Risk Reassessment is the periodic review of the risk environment to identify new risks and reevaluate existing ones, ensuring that risk management strategies remain relevant and effective.

• Regularly scheduled reviews
• Adjustment of risk priorities
• Adaptation of risk management plans
• Keeps risk management efforts aligned with changes
• Allows for proactive response to new risks
• Ensures continuous improvement in risk management
• Can be resource-intensive
• Requires ongoing commitment from all levels of management

10. Brainstorming

Brainstorming is a creative group problem-solving technique used to generate a broad range of ideas for risk identification and mitigation strategies.

• Facilitation of open and uninhibited discussion
• Generation of a large number of ideas
• Encouragement of innovative thinking
• Promotes team involvement and creativity
• Uncovers unique insights and solutions
• Enhances stakeholder engagement
• May produce a large volume of unfeasible ideas
• Requires effective facilitation to be productive

11. Risk Monitoring

Risk Monitoring is the continuous process of tracking identified risks, monitoring residual risks, and identifying new risks as they emerge.

• Regular tracking of risk triggers and impacts
• Adjustment of risk responses based on monitoring data
• Integration with overall project or organizational reporting
• Ensures that risks are actively managed throughout the lifecycle
• Allows for timely adjustments to risk management strategies
• Improves overall risk awareness and preparedness
• Requires dedicated resources for monitoring activities
• May be seen as burdensome without clear benefits

12. Delphi Technique

The Delphi Technique is a structured communication technique originally developed as a systematic, interactive forecasting method based on a panel of experts.

• Anonymous feedback from experts
• Iterative rounds of questioning
• Consensus building among panel members
• Reduces the influence of dominant personalities
• Gathers diverse expert opinions
• Enhances accuracy of risk assessments
• Time-consuming process
• Depends on the selection of appropriate experts

13. Checklists

Checklists are simple, yet effective tools used to ensure that all potential risks and necessary risk management steps are considered.

• Comprehensive lists of common risks and responses
• Customizable to project or industry needs
• Easy to use and understand
• Provides a systematic approach to risk identification
• Ensures no critical step is overlooked
• Facilitates quick reviews
• May not cover all unique project risks
• Can lead to a false sense of security

14. Reserve Analysis

Reserve Analysis involves setting aside contingency reserves (time, money, or resources) to address risks that have a high impact or probability of occurring.

• Calculation of contingency reserves based on risk analysis
• Integration into project budgets and schedules
• Regular review and adjustment of reserves
• Provides a buffer for unforeseen risks
• Enhances flexibility and resilience of projects
• Supports more accurate budgeting and scheduling
• Ties up resources that could be used elsewhere
• Requires careful estimation to avoid over or under-reserving

15. Riskonnect

Riskonnect is a leading integrated risk management software solution that offers a comprehensive suite of applications to help organizations identify, manage, and mitigate risks across their operations.

• Integrated risk management across multiple domains
• Real-time data analytics and reporting
• Customizable dashboards and workflows
• Offers a holistic view of risk across the organization
• Streamlines risk management processes
• Facilitates regulatory compliance and strategic decision-making
• Can be complex to implement
• May require significant investment

For small businesses, effectively managing risks is crucial for sustainability and growth, especially given their often limited resources. The best risk management tools for small businesses are cost-effective, easy to implement, and scalable as the business grows. Here are some key tools and strategies that fit these criteria:

1. Simple Risk Registers

• A basic risk register that tracks identified risks, their impact, likelihood, and mitigation strategies is invaluable. It can be as simple as a spreadsheet.
• It is cost-effective, straightforward to set up and maintain, and easily customized to fit the business's specific needs.
• As the business grows, it might require a more sophisticated system, but a simple register is a good starting point.

2. SWOT Analysis

• SWOT analysis helps small businesses identify internal strengths and weaknesses, as well as external opportunities and threats.
• It's a free strategic planning tool that helps make informed decisions and identifies areas for improvement and growth.
• Regular updates are necessary to keep the analysis relevant to the current market conditions.

3. Cloud-Based Project Management Tools

• Many cloud-based project management tools offer integrated risk management features that allow users to track projects, risks, and tasks in one place.
• These tools are scalable, accessible from anywhere, and often come with affordable subscription models suitable for small businesses.
• Choose tools that offer the specific features you need without paying for unnecessary extras.

4. Financial Management Software

• Software that manages finances can help identify financial risks through analysis of cash flow, expenses, and revenues.
• Helps in budgeting and forecasting , identifying potential financial shortfalls before they become critical.
• To avoid manual data entry, look for software that integrates with your existing systems (like invoicing or payroll).

5. Cybersecurity Assessment Tools

• Cybersecurity is critical for all businesses. Small businesses can use basic cybersecurity assessment tools to identify vulnerabilities.
• Protects against data breaches and cyber threats can be particularly devastating for small businesses.
• Regular updates and training on cybersecurity best practices are essential to keep up with new threats.

6. Checklists and Standard Operating Procedures (SOPs)

• Developing checklists and SOPs for regular and risk-prone operations can significantly reduce operational risks.
• Ensures consistency in operations, helps in training new employees, and reduces errors and accidents.
• Requires time to develop and maintain, but pays off by preventing costly mistakes.

7. Insurance

• Insurance is a traditional but essential tool for managing risk, offering protection against potential losses.
• It can cover various risks, including property damage, liability, and business interruption.
• It’s crucial to regularly review coverage to ensure it matches the business's evolving needs and risks.

8. Risk Management Software for Small Businesses

• There are several affordable risk management software options designed specifically for small businesses.
• These tools can automate many risk management processes, offer insights through data analysis , and improve overall efficiency.
• Choose software that offers scalability and customer support suited to small businesses.

The frequency of risk assessments can vary significantly depending on several factors, including the nature of the business, the industry in which it operates, changes in the operational environment, and specific regulatory requirements. However, there are general guidelines that can help determine an appropriate schedule for conducting risk assessments:

Regularly Scheduled Assessments

Most organizations benefit from conducting formal risk assessments at least annually. This yearly cycle allows businesses to review and update their risk profiles in light of operational, market, or regulatory changes. Annual assessments are often aligned with strategic planning cycles, making integrating risk management with overall business strategy easier.

Following Significant Changes

Besides the regular schedule, risk assessments should be conducted when significant changes occur within the organization or its external environment. These changes might include:

Introduction of New Products or Services

• Entry into new markets or regions
• Major organizational changes (e.g., mergers, acquisitions, or restructuring)
• Significant shifts in economic, political, or technological conditions
• Updates to laws and regulations affecting the organization
• Project-Specific Assessments

Continuous Monitoring

While formal assessments may be scheduled periodically, risk monitoring should be ongoing. Continuous monitoring helps identify emerging risks and allows organizations to respond proactively. This approach is particularly important for managing rapidly changing financial, cybersecurity , and compliance risks.

Industry-Specific Guidelines

Certain industries, such as finance, healthcare, and energy, are subject to specific regulatory requirements that dictate the minimum frequency of risk assessments. Organizations in these sectors must comply with these requirements but may conduct assessments more frequently based on their risk appetite and profile.

Best Practices

• Embedding Risk Management: Integrating risk assessment into daily operations and decision-making processes helps create a risk-aware culture.
• Flexibility: Be prepared to conduct unscheduled risk assessments in response to emerging threats or unexpected events.
• Leverage Technology: Use risk management software to facilitate continuous risk monitoring and provide alerts on new or escalating risks.

Risk management tools help organizations identify, assess, and mitigate risks. While they are crucial in forecasting potential risks based on available data and historical trends , it's important to understand their capabilities and limitations in predicting future risks.

Capabilities

Data analysis and trend prediction.

Many risk management tools utilize data analytics to identify patterns and trends in historical data. This can include financial performance, operational incidents, and external market dynamics. By analyzing these trends, the tools can forecast potential future risks.

Simulation Models

Tools like Monte Carlo simulations allow for exploring various scenarios based on different assumptions and inputs. These simulations can provide a range of outcomes with probabilities, helping organizations understand potential future risks under various conditions.

Artificial Intelligence and Machine Learning

AI and machine learning models can predict potential future risks by analyzing vast amounts of data, including unstructured data from news articles, social media, and other digital platforms. These technologies can detect emerging trends and potential risk indicators that may not be apparent through traditional analysis.

Scenario Analysis

Risk management tools that facilitate scenario analysis enable organizations to explore the impacts of various hypothetical future events. This can help prepare for possible scenarios, even if a risk's exact nature or timing cannot be predicted.

Limitations

Dependence on historical data.

Predictions are often based on historical data, assuming future events follow similar patterns. This approach may not accurately predict unprecedented risks or black swan events.

Changing Variables

Rapid changes in variables, including technological advances, geopolitical shifts, and unexpected global events like pandemics, can compromise the effectiveness of predictive models .

Complexity and Interconnectivity of Risks

Modern risks are increasingly complex and interconnected. Traditional tools may not fully capture the cascading effects of one risk on various aspects of an organization or the global economy.

Subjectivity and Bias

The input parameters and assumptions underlying risk predictions can introduce subjectivity and bias, potentially skewing the outcomes of risk assessments.

Regulatory changes significantly impact risk management strategies within organizations across various industries . These changes can alter the risk landscape dramatically, necessitating adjustments to risk identification, assessment, and mitigation processes. Understanding the nature of these impacts is crucial for ensuring that organizations remain compliant, resilient, and strategically aligned with their business objectives in the face of regulatory evolution.

Direct Impacts on Risk Management Strategies

• Compliance Risk Alteration: New regulations or amendments to existing ones directly affect an organization's compliance risk profile. Organizations must adjust their risk management strategies to address these changes, ensuring new compliance risks are identified, assessed, and mitigated effectively.
• Resource Allocation: Implementing changes to comply with new regulations often requires reallocation of resources. This might include investing in new technologies, training staff, or hiring additional personnel to manage compliance. Such changes can impact the organization’s financial and operational risk management strategies.
• Process and Operational Adjustments: Regulatory changes may necessitate modifications to business processes , operational practices, and organizational structures. Risk management strategies must adapt to these operational shifts, identifying new risks introduced by these changes and mitigating potential impacts on the organization’s objectives.
• Strategic Reorientation: In some cases, regulatory changes can be transformative enough to require reevaluating the organization's business strategy. This might involve entering new markets, discontinuing certain offerings, or changing the business model, each carrying risks that must be managed.

Indirect Impacts on Risk Management Strategies

• Market Dynamics: Regulatory changes can alter the competitive landscape, affecting market dynamics and, consequently, an organization’s market risk. For instance, new regulations might create barriers to entry or exit, change the competitive advantage among players, or shift customer preferences.
• Technological Innovation: Organizations might need to adopt new technologies faster than anticipated to comply with new regulations. This introduces technological risks, such as cybersecurity threats and strategic risks, as the organization navigates to implement and integrate new technologies .
• Reputation and Stakeholder Relations: How an organization responds to regulatory changes can impact its reputation and relationships with stakeholders, including investors, customers, and regulatory bodies. Effective risk management strategies must consider managing these perceptions and relationships.

Best Practices for Managing Regulatory Change Risks

• Proactive Monitoring and Analysis: Continuous monitoring of the regulatory landscape and proactive analysis of potential impacts can help organizations anticipate changes and adjust their risk management strategies accordingly.
• Flexible and Adaptive Risk Management Frameworks: Developing flexible risk management frameworks that can easily adapt to changes in the regulatory environment ensures that organizations can respond swiftly and effectively.
• Stakeholder Engagement: Engaging with regulators, industry groups, and other stakeholders can provide insights into potential regulatory changes and offer avenues for influencing the development of regulations.
• Integrated Compliance and Risk Management: Integrating compliance management with broader risk management processes ensures a holistic approach to managing the impacts of regulatory changes.

Learn from a course that has been designed to help you ace your PMP exam in the first attemp! Check out our PMP Certification Training Course today!

Understanding and implementing the right risk management tools and techniques is essential for organizations aiming to navigate the complexities of today's business landscape effectively. From traditional methods like SWOT analysis and checklists to advanced technologies such as AI-powered risk intelligence platforms, the range of tools available allows organizations to tailor their risk management strategies to their specific needs.

Earning a PMP certification can be a significant step forward for professionals looking to enhance their expertise in risk management and take their careers to the next level. Simplilearn’s PMP Certification Training is designed to equip you with the skills necessary to excel in project management, including comprehensive risk management.

1. What are the best risk management tools for small businesses? 

The best risk management tools for small businesses include:

• Risk Assessment Templates: To identify and prioritize risks.
• Project Management Software: Asana or Trello for tracking progress and mitigating risks.
• Financial Management Tools: Like QuickBooks, for financial risk management.
• Cybersecurity Tools: To protect against data breaches and cyber threats.

2. How often should risk assessments be conducted? 

Risk assessments should be conducted regularly, at least annually, or whenever significant changes occur within the business or its external environment. High-risk sectors may require more frequent assessments.

3. Can risk management tools predict future risks?

While risk management tools can help identify potential future risks by analyzing trends and past data, they cannot predict all future risks with certainty. They enhance preparedness and the ability to respond effectively.

4. How do regulatory changes impact risk management strategies?

Regulatory changes can significantly impact risk management strategies, requiring businesses to adapt to stay compliant. Changes may introduce new risks or alter existing ones, necessitating updates to risk assessments, policies, and procedures. Staying informed and agile is crucial to manage regulatory risks.

Our Project Management Courses Duration And Fees

Project Management Courses typically range from a few weeks to several months, with fees varying based on program and institution.

Recommended Reads

An Introduction to Project Management: A Beginner’s Guide

The Basic Principles of Project Management

What is Agile Project Management?

Project Management Interview Guide

PMP Study: 3 Types of Contracts in Project Management

What Is Project Management?

Get Affiliated Certifications with Live Class programs

• PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

Common pitfalls in project management

View or edit this activity in your CPD log.

Project failure often starts at the beginning. The UK government's Project Initiation Lessons Learned Report reveals critical missteps project managers frequently make during the initiation phase. Addressing these pitfalls can unlock the path to smoother execution and successful outcomes.

1. Inadequate stakeholder engagement 

One of the most frequent oversights in project initiation is the failure to adequately engage stakeholders. The report highlights that many project managers underestimate the importance of early and continuous stakeholder involvement. This can lead to misaligned expectations, lack of buy-in and potential resistance down the line.  

Key takeaway:  

Project managers should prioritise stakeholder engagement from the very beginning. This involves identifying all relevant stakeholders, understanding their needs and concerns and maintaining open lines of communication throughout the project lifecycle.

2. Insufficient risk management 

Another common area of neglect is risk management. The report points out that many projects suffer from a lack of comprehensive risk assessment and mitigation strategies during the initiation phase. This can result in unforeseen issues that derail progress and escalate costs.  

Effective risk management should be a cornerstone of project initiation. Project managers need to conduct thorough risk assessments, develop mitigation plans, and regularly review and update these plans as the project evolves.

3. Unclear objectives and scope

Clarity in project objectives and scope is essential for guiding the team and measuring success. However, the report reveals that projects often start with vague or poorly defined objectives and scope, leading to confusion and scope creep.  

Project managers must ensure that project objectives and scope are clearly defined and documented during the initiation phase. This includes setting specific, measurable, achievable, relevant, and time-bound (SMART) goals and establishing a well-defined project scope.

4. Inadequate resourcing and planning

The report also highlights that many projects face issues due to inadequate resourcing and planning. This includes underestimating the resources needed, failing to allocate sufficient time for planning and not considering the impact of resource constraints.  

Proper resourcing and detailed planning are crucial for project success. Project managers should conduct a thorough resource assessment, create realistic timelines, and develop a detailed project plan that considers all potential constraints and dependencies.

5. Lack of governance and oversight

Effective governance and oversight are critical for ensuring that projects stay on track and meet their objectives. The report indicates that many projects lack robust governance structures, leading to poor decision-making and accountability issues.  

Establishing strong governance frameworks is essential. Project managers should define clear roles and responsibilities, set up oversight mechanisms, and ensure regular monitoring and reporting to keep the project aligned with its goals.

6. Insufficient communcation

Communication breakdowns are a common issue highlighted in the report. Many projects suffer from poor communication practices, resulting in misunderstandings, misaligned expectations, and reduced team cohesion.  

Effective communication is vital for project success. Project managers should develop a comprehensive communication plan that outlines how information will be shared, the frequency of updates, and the channels used for communication. This ensures that all stakeholders are informed and engaged throughout the project.  

Conclusion  

The Project Initiation Lessons Learned Report provides valuable insights into the common pitfalls that project managers often encounter during the initiation phase. By addressing these areas—stakeholder engagement, risk management, clarity in objectives and scope, resourcing and planning, governance and oversight, and communication—project managers can enhance their approach to project initiation and set the foundation for successful project execution. Incorporating these lessons into your project management practices will not only help in avoiding common mistakes but also pave the way for more efficient and effective project outcomes.  

For more detailed insights, you can refer to the full Project Initiation Lessons Learned Report

You may also be interested in:

• What is project communication?
• Engaging stakeholders pack
• Information sheet: Risk management

Pawan Tejani is a recent graduate of MSc Project Management, University of Portsmouth with a passion for turning complex ideas into successful projects. As an Operations Manager at Sarinitiy Homes Limited, he applies his project management expertise daily. Pawan is dedicated to continuous learning and plans to pursue industry-leading certifications in the future. Connect with him on LinkedIn. https://www.linkedin.com/in/pawan-tejani/

Log in  to post a comment, or create an account if you don't have one already.

McKinsey quote of the day

“the way i look at it is that you need to be solving a big problem. if your solution happens to be powered by ai, great. if it happens to be powered by generative ai, wonderful. but the core issue needs to be there—is this solving a business problem that is a critical need and is it something that can ultimately be scaled to a global platform”.

Wes Nichols, a partner at March Capital, on generative AI and solving problems in a recent episode  of The Committed Innovator

• Open access
• Published: 03 July 2024

The impact of evidence-based nursing leadership in healthcare settings: a mixed methods systematic review

• Maritta Välimäki 1 , 2 ,
• Shuang Hu 3 ,
• Tella Lantta 1 ,
• Kirsi Hipp 1 , 4 ,
• Jaakko Varpula 1 ,
• Jiarui Chen 3 ,
• Gaoming Liu 5 ,
• Yao Tang 3 ,
• Wenjun Chen 3 &
• Xianhong Li 3  

BMC Nursing volume  23 , Article number:  452 ( 2024 ) Cite this article

597 Accesses

Metrics details

The central component in impactful healthcare decisions is evidence. Understanding how nurse leaders use evidence in their own managerial decision making is still limited. This mixed methods systematic review aimed to examine how evidence is used to solve leadership problems and to describe the measured and perceived effects of evidence-based leadership on nurse leaders and their performance, organizational, and clinical outcomes.

We included articles using any type of research design. We referred nurses, nurse managers or other nursing staff working in a healthcare context when they attempt to influence the behavior of individuals or a group in an organization using an evidence-based approach. Seven databases were searched until 11 November 2021. JBI Critical Appraisal Checklist for Quasi-experimental studies, JBI Critical Appraisal Checklist for Case Series, Mixed Methods Appraisal Tool were used to evaluate the Risk of bias in quasi-experimental studies, case series, mixed methods studies, respectively. The JBI approach to mixed methods systematic reviews was followed, and a parallel-results convergent approach to synthesis and integration was adopted.

Thirty-one publications were eligible for the analysis: case series ( n  = 27), mixed methods studies ( n  = 3) and quasi-experimental studies ( n  = 1). All studies were included regardless of methodological quality. Leadership problems were related to the implementation of knowledge into practice, the quality of nursing care and the resource availability. Organizational data was used in 27 studies to understand leadership problems, scientific evidence from literature was sought in 26 studies, and stakeholders’ views were explored in 24 studies. Perceived and measured effects of evidence-based leadership focused on nurses’ performance, organizational outcomes, and clinical outcomes. Economic data were not available.

Conclusions

This is the first systematic review to examine how evidence is used to solve leadership problems and to describe its measured and perceived effects from different sites. Although a variety of perceptions and effects were identified on nurses’ performance as well as on organizational and clinical outcomes, available knowledge concerning evidence-based leadership is currently insufficient. Therefore, more high-quality research and clinical trial designs are still needed.

Trail registration

The study was registered (PROSPERO CRD42021259624).

Peer Review reports

Global health demands have set new roles for nurse leaders [ 1 ].Nurse leaders are referred to as nurses, nurse managers, or other nursing staff working in a healthcare context who attempt to influence the behavior of individuals or a group based on goals that are congruent with organizational goals [ 2 ]. They are seen as professionals “armed with data and evidence, and a commitment to mentorship and education”, and as a group in which “leaders innovate, transform, and achieve quality outcomes for patients, health care professionals, organizations, and communities” [ 3 ]. Effective leadership occurs when team members critically follow leaders and are motivated by a leader’s decisions based on the organization’s requests and targets [ 4 ]. On the other hand, problems caused by poor leadership may also occur, regarding staff relations, stress, sickness, or retention [ 5 ]. Therefore, leadership requires an understanding of different problems to be solved using synthesizing evidence from research, clinical expertise, and stakeholders’ preferences [ 6 , 7 ]. If based on evidence, leadership decisions, also referred as leadership decision making [ 8 ], could ensure adequate staffing [ 7 , 9 ] and to produce sufficient and cost-effective care [ 10 ]. However, nurse leaders still rely on their decision making on their personal [ 11 ] and professional experience [ 10 ] over research evidence, which can lead to deficiencies in the quality and safety of care delivery [ 12 , 13 , 14 ]. As all nurses should demonstrate leadership in their profession, their leadership competencies should be strengthened [ 15 ].

Evidence-informed decision-making, referred to as evidence appraisal and application, and evaluation of decisions [ 16 ], has been recognized as one of the core competencies for leaders [ 17 , 18 ]. The role of evidence in nurse leaders’ managerial decision making has been promoted by public authorities [ 19 , 20 , 21 ]. Evidence-based management, another concept related to evidence-based leadership, has been used as the potential to improve healthcare services [ 22 ]. It can guide nursing leaders, in developing working conditions, staff retention, implementation practices, strategic planning, patient care, and success of leadership [ 13 ]. Collins and Holton [ 23 ] in their systematic review and meta-analysis examined 83 studies regarding leadership development interventions. They found that leadership training can result in significant improvement in participants’ skills, especially in knowledge level, although the training effects varied across studies. Cummings et al. [ 24 ] reviewed 100 papers (93 studies) and concluded that participation in leadership interventions had a positive impact on the development of a variety of leadership styles. Clavijo-Chamorro et al. [ 25 ] in their review of 11 studies focused on leadership-related factors that facilitate evidence implementation: teamwork, organizational structures, and transformational leadership. The role of nurse managers was to facilitate evidence-based practices by transforming contexts to motivate the staff and move toward a shared vision of change.

As far as we are aware, however, only a few systematic reviews have focused on evidence-based leadership or related concepts in the healthcare context aiming to analyse how nurse leaders themselves uses evidence in the decision-making process. Young [ 26 ] targeted definitions and acceptance of evidence-based management (EBMgt) in healthcare while Hasanpoor et al. [ 22 ] identified facilitators and barriers, sources of evidence used, and the role of evidence in the process of decision making. Both these reviews concluded that EBMgt was of great importance but used limitedly in healthcare settings due to a lack of time, a lack of research management activities, and policy constraints. A review by Williams [ 27 ] showed that the usage of evidence to support management in decision making is marginal due to a shortage of relevant evidence. Fraser [ 28 ] in their review further indicated that the potential evidence-based knowledge is not used in decision making by leaders as effectively as it could be. Non-use of evidence occurs and leaders base their decisions mainly on single studies, real-world evidence, and experts’ opinions [ 29 ]. Systematic reviews and meta-analyses rarely provide evidence of management-related interventions [ 30 ]. Tate et al. [ 31 ] concluded based on their systematic review and meta-analysis that the ability of nurse leaders to use and critically appraise research evidence may influence the way policy is enacted and how resources and staff are used to meet certain objectives set by policy. This can further influence staff and workforce outcomes. It is therefore important that nurse leaders have the capacity and motivation to use the strongest evidence available to effect change and guide their decision making [ 27 ].

Despite of a growing body of evidence, we found only one review focusing on the impact of evidence-based knowledge. Geert et al. [ 32 ] reviewed literature from 2007 to 2016 to understand the elements of design, delivery, and evaluation of leadership development interventions that are the most reliably linked to outcomes at the level of the individual and the organization, and that are of most benefit to patients. The authors concluded that it is possible to improve individual-level outcomes among leaders, such as knowledge, motivation, skills, and behavior change using evidence-based approaches. Some of the most effective interventions included, for example, interactive workshops, coaching, action learning, and mentoring. However, these authors found limited research evidence describing how nurse leaders themselves use evidence to support their managerial decisions in nursing and what the outcomes are.

To fill the knowledge gap and compliment to existing knowledgebase, in this mixed methods review we aimed to (1) examine what leadership problems nurse leaders solve using an evidence-based approach and (2) how they use evidence to solve these problems. We also explored (3) the measured and (4) perceived effects of the evidence-based leadership approach in healthcare settings. Both qualitative and quantitative components of the effects of evidence-based leadership were examined to provide greater insights into the available literature [ 33 ]. Together with the evidence-based leadership approach, and its impact on nursing [ 34 , 35 ], this knowledge gained in this review can be used to inform clinical policy or organizational decisions [ 33 ]. The study is registered (PROSPERO CRD42021259624). The methods used in this review were specified in advance and documented in a priori in a published protocol [ 36 ]. Key terms of the review and the search terms are defined in Table  1 (population, intervention, comparison, outcomes, context, other).

In this review, we used a mixed methods approach [ 37 ]. A mixed methods systematic review was selected as this approach has the potential to produce direct relevance to policy makers and practitioners [ 38 ]. Johnson and Onwuegbuzie [ 39 ] have defined mixed methods research as “the class of research in which the researcher mixes or combines quantitative and qualitative research techniques, methods, approaches, concepts or language into a single study.” Therefore, we combined quantitative and narrative analysis to appraise and synthesize empirical evidence, and we held them as equally important in informing clinical policy or organizational decisions [ 34 ]. In this review, a comprehensive synthesis of quantitative and qualitative data was performed first and then discussed in discussion part (parallel-results convergent design) [ 40 ]. We hoped that different type of analysis approaches could complement each other and deeper picture of the topic in line with our research questions could be gained [ 34 ].

Inclusion and exclusion criteria

Inclusion and exclusion criteria of the study are described in Table  1 .

Search strategy

A three-step search strategy was utilized. First, an initial limited search with #MEDLINE was undertaken, followed by analysis of the words used in the title, abstract, and the article’s key index terms. Second, the search strategy, including identified keywords and index terms, was adapted for each included data base and a second search was undertaken on 11 November 2021. The full search strategy for each database is described in Additional file 1 . Third, the reference list of all studies included in the review were screened for additional studies. No year limits or language restrictions were used.

Information sources

The database search included the following: CINAHL (EBSCO), Cochrane Library (academic database for medicine and health science and nursing), Embase (Elsevier), PsycINFO (EBSCO), PubMed (MEDLINE), Scopus (Elsevier) and Web of Science (academic database across all scientific and technical disciplines, ranging from medicine and social sciences to arts and humanities). These databases were selected as they represent typical databases in health care context. Subject headings from each of the databases were included in the search strategies. Boolean operators ‘AND’ and ‘OR’ were used to combine the search terms. An information specialist from the University of Turku Library was consulted in the formation of the search strategies.

Study selection

All identified citations were collated and uploaded into Covidence software (Covidence systematic review software, Veritas Health Innovation, Melbourne, Australia www.covidence.org ), and duplicates were removed by the software. Titles and abstracts were screened and assessed against the inclusion criteria independently by two reviewers out of four, and any discrepancies were resolved by the third reviewer (MV, KH, TL, WC). Studies meeting the inclusion criteria were retrieved in full and archived in Covidence. Access to one full-text article was lacking: the authors for one study were contacted about the missing full text, but no full text was received. All remaining hits of the included studies were retrieved and assessed independently against the inclusion criteria by two independent reviewers of four (MV, KH, TL, WC). Studies that did not meet the inclusion criteria were excluded, and the reasons for exclusion were recorded in Covidence. Any disagreements that arose between the reviewers were resolved through discussions with XL.

Assessment of methodological quality

Eligible studies were critically appraised by two independent reviewers (YT, SH). Standardized critical appraisal instruments based on the study design were used. First, quasi-experimental studies were assessed using the JBI Critical Appraisal Checklist for Quasi-experimental studies [ 44 ]. Second, case series were assessed using the JBI Critical Appraisal Checklist for Case Series [ 45 ]. Third, mixed methods studies were appraised using the Mixed Methods Appraisal Tool [ 46 ].

To increase inter-reviewer reliability, the review agreement was calculated (SH) [ 47 ]. A kappa greater than 0.8 was considered to represent a high level of agreement (0–0.1). In our data, the agreement was 0.75. Discrepancies raised between two reviewers were resolved through discussion and modifications and confirmed by XL. As an outcome, studies that met the inclusion criteria were proceeded to critical appraisal and assessed as suitable for inclusion in the review. The scores for each item and overall critical appraisal scores were presented.

Data extraction

For data extraction, specific tables were created. First, study characteristics (author(s), year, country, design, number of participants, setting) were extracted by two authors independently (JC, MV) and reviewed by TL. Second, descriptions of the interventions were extracted by two reviewers (JV, JC) using the structure of the TIDIeR (Template for Intervention Description and Replication) checklist (brief name, the goal of the intervention, material and procedure, models of delivery and location, dose, modification, adherence and fidelity) [ 48 ]. The extractions were confirmed (MV).

Third, due to a lack of effectiveness data and a wide heterogeneity between study designs and presentation of outcomes, no attempt was made to pool the quantitative data statistically; the findings of the quantitative data were presented in narrative form only [ 44 ]. The separate data extraction tables for each research question were designed specifically for this study. For both qualitative (and a qualitative component of mixed-method studies) and quantitative studies, the data were extracted and tabulated into text format according to preplanned research questions [ 36 ]. To test the quality of the tables and the data extraction process, three authors independently extracted the data from the first five studies (in alphabetical order). After that, the authors came together to share and determine whether their approaches of the data extraction were consistent with each other’s output and whether the content of each table was in line with research question. No reason was found to modify the data extraction tables or planned process. After a consensus of the data extraction process was reached, the data were extracted in pairs by independent reviewers (WC, TY, SH, GL). Any disagreements that arose between the reviewers were resolved through discussion and with a third reviewer (MV).

Data analysis

We were not able to conduct a meta-analysis due to a lack of effectiveness data based on clinical trials. Instead, we used inductive thematic analysis with constant comparison to answer the research question [ 46 , 49 ] using tabulated primary data from qualitative and quantitative studies as reported by the original authors in narrative form only [ 47 ]. In addition, the qualitizing process was used to transform quantitative data to qualitative data; this helped us to convert the whole data into themes and categories. After that we used the thematic analysis for the narrative data as follows. First, the text was carefully read, line by line, to reveal topics answering each specific review question (MV). Second, the data coding was conducted, and the themes in the data were formed by data categorization. The process of deriving the themes was inductive based on constant comparison [ 49 ]. The results of thematic analysis and data categorization was first described in narrative format and then the total number of studies was calculated where the specific category was identified (%).

Stakeholder involvement

The method of reporting stakeholders’ involvement follows the key components by [ 50 ]: (1) people involved, (2) geographical location, (3) how people were recruited, (4) format of involvement, (5) amount of involvement, (6) ethical approval, (7) financial compensation, and (8) methods for reporting involvement.

In our review, stakeholder involvement targeted nurses and nurse leader in China. Nurse Directors of two hospitals recommended potential participants who received a personal invitation letter from researchers to participate in a discussion meeting. Stakeholders’ participation was based on their own free will. Due to COVID-19, one online meeting (1 h) was organized (25 May 2022). Eleven participants joined the meeting. Ethical approval was not applied and no financial compensation was offered. At the end of the meeting, experiences of stakeholders’ involvement were explored.

The meeting started with an introductory presentation with power points. The rationale, methods, and preliminary review results were shared with the participants [ 51 ].The meeting continued with general questions for the participants: (1) Are you aware of the concepts of evidence-based practice or evidence-based leadership?; (2) How important is it to use evidence to support decisions among nurse leaders?; (3) How is the evidence-based approach used in hospital settings?; and (4) What type of evidence is currently used to support nurse leaders’ decision making (e.g. scientific literature, organizational data, stakeholder views)?

Two people took notes on the course and content of the conversation. The notes were later transcripted in verbatim, and the key points of the discussions were summarised. Although answers offered by the stakeholders were very short, the information was useful to validate the preliminary content of the results, add the rigorousness of the review, and obtain additional perspectives. A recommendation of the stakeholders was combined in the Discussion part of this review increasing the applicability of the review in the real world [ 50 ]. At the end of the discussion, the value of stakeholders’ involvement was asked. Participants shared that the experience of participating was unique and the topic of discussion was challenging. Two authors of the review group further represented stakeholders by working together with the research team throughout the review study.

Search results

From seven different electronic databases, 6053 citations were identified as being potentially relevant to the review. Then, 3133 duplicates were removed by an automation tool (Covidence: www.covidence.org ), and one was removed manually. The titles and abstracts of 3040 of citations were reviewed, and a total of 110 full texts were included (one extra citation was found on the reference list but later excluded). Based on the eligibility criteria, 31 studies (32 hits) were critically appraised and deemed suitable for inclusion in the review. The search results and selection process are presented in the PRISMA [ 52 ] flow diagram Fig.  1 . The full list of references for included studies can be find in Additional file 2 . To avoid confusion between articles of the reference list and studies included in the analysis, the studies included in the review are referred inside the article using the reference number of each study (e.g. ref 1, ref 2).

Search results and study selection and inclusion process [ 52 ]

Characteristics of included studies

The studies had multiple purposes, aiming to develop practice, implement a new approach, improve quality, or to develop a model. The 31 studies (across 32 hits) were case series studies ( n  = 27), mixed methods studies ( n  = 3) and a quasi-experimental study ( n  = 1). All studies were published between the years 2004 and 2021. The highest number of papers was published in year 2020.

Table  2 describes the characteristics of included studies and Additional file 3 offers a narrative description of the studies.

Methodological quality assessment

Quasi-experimental studies.

We had one quasi-experimental study (ref 31). All questions in the critical appraisal tool were applicable. The total score of the study was 8 (out of a possible 9). Only one response of the tool was ‘no’ because no control group was used in the study (see Additional file 4 for the critical appraisal of included studies).

Case series studies . A case series study is typically defined as a collection of subjects with common characteristics. The studies do not include a comparison group and are often based on prevalent cases and on a sample of convenience [ 53 ]. Munn et al. [ 45 ] further claim that case series are best described as observational studies, lacking experimental and randomized characteristics, being descriptive studies, without a control or comparator group. Out of 27 case series studies included in our review, the critical appraisal scores varied from 1 to 9. Five references were conference abstracts with empirical study results, which were scored from 1 to 3. Full reports of these studies were searched in electronic databases but not found. Critical appraisal scores for the remaining 22 studies ranged from 1 to 9 out of a possible score of 10. One question (Q3) was not applicable to 13 studies: “Were valid methods used for identification of the condition for all participants included in the case series?” Only two studies had clearly reported the demographic of the participants in the study (Q6). Twenty studies met Criteria 8 (“Were the outcomes or follow-up results of cases clearly reported?”) and 18 studies met Criteria 7 (“Q7: Was there clear reporting of clinical information of the participants?”) (see Additional file 4 for the critical appraisal of included studies).

Mixed-methods studies

Mixed-methods studies involve a combination of qualitative and quantitative methods. This is a common design and includes convergent design, sequential explanatory design, and sequential exploratory design [ 46 ]. There were three mixed-methods studies. The critical appraisal scores for the three studies ranged from 60 to 100% out of a possible 100%. Two studies met all the criteria, while one study fulfilled 60% of the scored criteria due to a lack of information to understand the relevance of the sampling strategy well enough to address the research question (Q4.1) or to determine whether the risk of nonresponse bias was low (Q4.4) (see Additional file 4 for the critical appraisal of included studies).

Intervention or program components

The intervention of program components were categorized and described using the TiDier checklist: name and goal, theory or background, material, procedure, provider, models of delivery, location, dose, modification, and adherence and fidelity [ 48 ]. A description of intervention in each study is described in Additional file 5 and a narrative description in Additional file 6 .

Leadership problems

In line with the inclusion criteria, data for the leadership problems were categorized in all 31 included studies (see Additional file 7 for leadership problems). Three types of leadership problems were identified: implementation of knowledge into practice, the quality of clinical care, and resources in nursing care. A narrative summary of the results is reported below.

Implementing knowledge into practice

Eleven studies (35%) aimed to solve leadership problems related to implementation of knowledge into practice. Studies showed how to support nurses in evidence-based implementation (EBP) (ref 3, ref 5), how to engage nurses in using evidence in practice (ref 4), how to convey the importance of EBP (ref 22) or how to change practice (ref 4). Other problems were how to facilitate nurses to use guideline recommendations (ref 7) and how nurses can make evidence-informed decisions (ref 8). General concerns also included the linkage between theory and practice (ref 1) as well as how to implement the EBP model in practice (ref 6). In addition, studies were motivated by the need for revisions or updates of protocols to improve clinical practice (ref 10) as well as the need to standardize nursing activities (ref 11, ref 14).

The quality of the care

Thirteen (42%) focused on solving problems related to the quality of clinical care. In these studies, a high number of catheter infections led a lack of achievement of organizational goals (ref 2, ref 9). A need to reduce patient symptoms in stem cell transplant patients undergoing high-dose chemotherapy (ref 24) was also one of the problems to be solved. In addition, the projects focused on how to prevent pressure ulcers (ref 26, ref 29), how to enhance the quality of cancer treatment (ref 25) and how to reduce the need for invasive constipation treatment (ref 30). Concerns about patient safety (ref 15), high fall rates (ref 16, ref 19), dissatisfaction of patients (ref 16, ref 18) and nurses (ref 16, ref 30) were also problems that had initiated the projects. Studies addressed concerns about how to promote good contingency care in residential aged care homes (ref 20) and about how to increase recognition of human trafficking problems in healthcare (ref 21).

Resources in nursing care

Nurse leaders identified problems in their resources, especially in staffing problems. These problems were identified in seven studies (23%), which involved concerns about how to prevent nurses from leaving the job (ref 31), how to ensure appropriate recruitment, staffing and retaining of nurses (ref 13) and how to decrease nurses’ burden and time spent on nursing activities (ref 12). Leadership turnover was also reported as a source of dissatisfaction (ref 17); studies addressed a lack of structured transition and training programs, which led to turnover (ref 23), as well as how to improve intershift handoff among nurses (ref 28). Optimal design for new hospitals was also examined (ref 27).

Main features of evidence-based leadership

Out of 31 studies, 17 (55%) included all four domains of an evidence-based leadership approach, and four studies (13%) included evidence of critical appraisal of the results (see Additional file 8 for the main features of evidence-based Leadership) (ref 11, ref 14, ref 23, ref 27).

Organizational evidence

Twenty-seven studies (87%) reported how organizational evidence was collected and used to solve leadership problems (ref 2). Retrospective chart reviews (ref 5), a review of the extent of specific incidents (ref 19), and chart auditing (ref 7, ref 25) were conducted. A gap between guideline recommendations and actual care was identified using organizational data (ref 7) while the percentage of nurses’ working time spent on patient care was analyzed using an electronic charting system (ref 12). Internal data (ref 22), institutional data, and programming metrics were also analyzed to understand the development of the nurse workforce (ref 13).

Surveys (ref 3, ref 25), interviews (ref 3, ref 25) and group reviews (ref 18) were used to better understand the leadership problem to be solved. Employee opinion surveys on leadership (ref 17), a nurse satisfaction survey (ref 30) and a variety of reporting templates were used for the data collection (ref 28) reported. Sometimes, leadership problems were identified by evidence facilitators or a PI’s team who worked with staff members (ref 15, ref 17). Problems in clinical practice were also identified by the Nursing Professional Council (ref 14), managers (ref 26) or nurses themselves (ref 24). Current practices were reviewed (ref 29) and a gap analysis was conducted (ref 4, ref 16, ref 23) together with SWOT analysis (ref 16). In addition, hospital mission and vision statements, research culture established and the proportion of nursing alumni with formal EBP training were analyzed (ref 5). On the other hand, it was stated that no systematic hospital-specific sources of data regarding job satisfaction or organizational commitment were used (ref 31). In addition, statements of organizational analysis were used on a general level only (ref 1).

Scientific evidence identified

Twenty-six studies (84%) reported the use of scientific evidence in their evidence-based leadership processes. A literature search was conducted (ref 21) and questions, PICO, and keywords were identified (ref 4) in collaboration with a librarian. Electronic databases, including PubMed (ref 14, ref 31), Cochrane, and EMBASE (ref 31) were searched. Galiano (ref 6) used Wiley Online Library, Elsevier, CINAHL, Health Source: Nursing/Academic Edition, PubMed, and the Cochrane Library while Hoke (ref 11) conducted an electronic search using CINAHL and PubMed to retrieve articles.

Identified journals were reviewed manually (ref 31). The findings were summarized using ‘elevator speech’ (ref 4). In a study by Gifford et al. (ref 9) evidence facilitators worked with participants to access, appraise, and adapt the research evidence to the organizational context. Ostaszkiewicz (ref 20) conducted a scoping review of literature and identified and reviewed frameworks and policy documents about the topic and the quality standards. Further, a team of nursing administrators, directors, staff nurses, and a patient representative reviewed the literature and made recommendations for practice changes.

Clinical practice guidelines were also used to offer scientific evidence (ref 7, ref 19). Evidence was further retrieved from a combination of nursing policies, guidelines, journal articles, and textbooks (ref 12) as well as from published guidelines and literature (ref 13). Internal evidence, professional practice knowledge, relevant theories and models were synthesized (ref 24) while other study (ref 25) reviewed individual studies, synthesized with systematic reviews or clinical practice guidelines. The team reviewed the research evidence (ref 3, ref 15) or conducted a literature review (ref 22, ref 28, ref 29), a literature search (ref 27), a systematic review (ref 23), a review of the literature (ref 30) or ‘the scholarly literature was reviewed’ (ref 18). In addition, ‘an extensive literature review of evidence-based best practices was carried out’ (ref 10). However, detailed description how the review was conducted was lacking.

Views of stakeholders

A total of 24 studies (77%) reported methods for how the views of stakeholders, i.e., professionals or experts, were considered. Support to run this study was received from nursing leadership and multidisciplinary teams (ref 29). Experts and stakeholders joined the study team in some cases (ref 25, ref 30), and in other studies, their opinions were sought to facilitate project success (ref 3). Sometimes a steering committee was formed by a Chief Nursing Officer and Clinical Practice Specialists (ref 2). More specifically, stakeholders’ views were considered using interviews, workshops and follow-up teleconferences (ref 7). The literature review was discussed with colleagues (ref 11), and feedback and support from physicians as well as the consensus of staff were sought (ref 16).

A summary of the project findings and suggestions for the studies were discussed at 90-minute weekly meetings by 11 charge nurses. Nurse executive directors were consulted over a 10-week period (ref 31). An implementation team (nurse, dietician, physiotherapist, occupational therapist) was formed to support the implementation of evidence-based prevention measures (ref 26). Stakeholders volunteered to join in the pilot implementation (ref 28) or a stakeholder team met to determine the best strategy for change management, shortcomings in evidence-based criteria were discussed, and strategies to address those areas were planned (ref 5). Nursing leaders, staff members (ref 22), ‘process owners (ref 18) and program team members (ref 18, ref 19, ref 24) met regularly to discuss the problems. Critical input was sought from clinical educators, physicians, nutritionists, pharmacists, and nurse managers (ref 24). The unit director and senior nursing staff reviewed the contents of the product, and the final version of clinical pathways were reviewed and approved by the Quality Control Commission of the Nursing Department (ref 12). In addition, two co-design workshops with 18 residential aged care stakeholders were organized to explore their perspectives about factors to include in a model prototype (ref 20). Further, an agreement of stakeholders in implementing continuous quality services within an open relationship was conducted (ref 1).

Critical appraisal

In five studies (16%), a critical appraisal targeting the literature search was carried out. The appraisals were conducted by interns and teams who critiqued the evidence (ref 4). In Hoke’s study, four areas that had emerged in the literature were critically reviewed (ref 11). Other methods were to ‘critically appraise the search results’ (ref 14). Journal club team meetings (ref 23) were organized to grade the level and quality of evidence and the team ‘critically appraised relevant evidence’ (ref 27). On the other hand, the studies lacked details of how the appraisals were done in each study.

The perceived effects of evidence-based leadership

Perceived effects of evidence-based leadership on nurses’ performance.

Eleven studies (35%) described perceived effects of evidence-based leadership on nurses’ performance (see Additional file 9 for perceived effects of evidence-based leadership), which were categorized in four groups: awareness and knowledge, competence, ability to understand patients’ needs, and engagement. First, regarding ‘awareness and knowledge’, different projects provided nurses with new learning opportunities (ref 3). Staff’s knowledge (ref 20, ref 28), skills, and education levels improved (ref 20), as did nurses’ knowledge comprehension (ref 21). Second, interventions and approaches focusing on management and leadership positively influenced participants’ competence level to improve the quality of services. Their confidence level (ref 1) and motivation to change practice increased, self-esteem improved, and they were more positive and enthusiastic in their work (ref 22). Third, some nurses were relieved that they had learned to better handle patients’ needs (ref 25). For example, a systematic work approach increased nurses’ awareness of the patients who were at risk of developing health problems (ref 26). And last, nurse leaders were more engaged with staff, encouraging them to adopt the new practices and recognizing their efforts to change (ref 8).

Perceived effects on organizational outcomes

Nine studies (29%) described the perceived effects of evidence-based leadership on organizational outcomes (see Additional file 9 for perceived effects of evidence-based leadership). These were categorized into three groups: use of resources, staff commitment, and team effort. First, more appropriate use of resources was reported (ref 15, ref 20), and working time was more efficiently used (ref 16). In generally, a structured approach made implementing change more manageable (ref 1). On the other hand, in the beginning of the change process, the feedback from nurses was unfavorable, and they experienced discomfort in the new work style (ref 29). New approaches were also perceived as time consuming (ref 3). Second, nurse leaders believed that fewer nursing staff than expected left the organization over the course of the study (ref 31). Third, the project helped staff in their efforts to make changes, and it validated the importance of working as a team (ref 7). Collaboration and support between the nurses increased (ref 26). On the other hand, new work style caused challenges in teamwork (ref 3).

Perceived effects on clinical outcomes

Five studies (16%) reported the perceived effects of evidence-based leadership on clinical outcomes (see Additional file 9 for perceived effects of evidence-based leadership), which were categorized in two groups: general patient outcomes and specific clinical outcomes. First, in general, the project assisted in connecting the guideline recommendations and patient outcomes (ref 7). The project was good for the patients in general, and especially to improve patient safety (ref 16). On the other hand, some nurses thought that the new working style did not work at all for patients (ref 28). Second, the new approach used assisted in optimizing patients’ clinical problems and person-centered care (ref 20). Bowel management, for example, received very good feedback (ref 30).

The measured effects of evidence-based leadership

The measured effects on nurses’ performance.

Data were obtained from 20 studies (65%) (see Additional file 10 for measured effects of evidence-based leadership) and categorized nurse performance outcomes for three groups: awareness and knowledge, engagement, and satisfaction. First, six studies (19%) measured the awareness and knowledge levels of participants. Internship for staff nurses was beneficial to help participants to understand the process for using evidence-based practice and to grow professionally, to stimulate for innovative thinking, to give knowledge needed to use evidence-based practice to answer clinical questions, and to make possible to complete an evidence-based practice project (ref 3). Regarding implementation program of evidence-based practice, those with formal EBP training showed an improvement in knowledge, attitude, confidence, awareness and application after intervention (ref 3, ref 11, ref 20, ref 23, ref 25). On the contrary, in other study, attitude towards EBP remained stable ( p  = 0.543). and those who applied EBP decreased although no significant differences over the years ( p  = 0.879) (ref 6).

Second, 10 studies (35%) described nurses’ engagement to new practices (ref 5, ref 6, ref 7, ref 10, ref 16, ref 17, ref 18, ref 21, ref 25, ref 27). 9 studies (29%) studies reported that there was an improvement of compliance level of participants (ref 6, ref 7, ref 10, ref 16, ref 17, ref 18, ref 21, ref 25, ref 27). On the contrary, in DeLeskey’s (ref 5) study, although improvement was found in post-operative nausea and vomiting’s (PONV) risk factors documented’ (2.5–63%), and ’risk factors communicated among anaesthesia and surgical staff’ (0–62%), the improvement did not achieve the goal. The reason was a limited improvement was analysed. It was noted that only those patients who had been seen by the pre-admission testing nurse had risk assessments completed. Appropriate treatment/prophylaxis increased from 69 to 77%, and from 30 to 49%; routine assessment for PONV/rescue treatment 97% and 100% was both at 100% following the project. The results were discussed with staff but further reasons for a lack of engagement in nursing care was not reported.

And third, six studies (19%) reported nurses’ satisfaction with project outcomes. The study results showed that using evidence in managerial decisions improved nurses’ satisfaction and attitudes toward their organization ( P  < 0.05) (ref 31). Nurses’ overall job satisfaction improved as well (ref 17). Nurses’ satisfaction with usability of the electronic charting system significantly improved after introduction of the intervention (ref 12). In handoff project in seven hospitals, improvement was reported in all satisfaction indicators used in the study although improvement level varied in different units (ref 28). In addition, positive changes were reported in nurses’ ability to autonomously perform their job (“How satisfied are you with the tools and resources available for you treat and prevent patient constipation?” (54%, n  = 17 vs. 92%, n  = 35, p  < 0.001) (ref 30).

The measured effects on organizational outcomes

Thirteen studies (42%) described the effects of a project on organizational outcomes (see Additional file 10 for measured effects of evidence-based leadership), which were categorized in two groups: staff compliance, and changes in practices. First, studies reported improved organizational outcomes due to staff better compliance in care (ref 4, ref 13, ref 17, ref 23, ref 27, ref 31). Second, changes in organization practices were also described (ref 11) like changes in patient documentation (ref 12, ref 21). Van Orne (ref 30) found a statistically significant reduction in the average rate of invasive medication administration between pre-intervention and post-intervention ( p  = 0.01). Salvador (ref 24) also reported an improvement in a proactive approach to mucositis prevention with an evidence-based oral care guide. On the contrary, concerns were also raised such as not enough time for new bedside report (ref 16) or a lack of improvement of assessment of diabetic ulcer (ref 8).

The measured effects on clinical outcomes

A variety of improvements in clinical outcomes were reported (see Additional file 10 for measured effects of evidence-based leadership): improvement in patient clinical status and satisfaction level. First, a variety of improvement in patient clinical status was reported. improvement in Incidence of CAUTI decreased 27.8% between 2015 and 2019 (ref 2) while a patient-centered quality improvement project reduced CAUTI rates to 0 (ref 10). A significant decrease in transmission rate of MRSA transmission was also reported (ref 27) and in other study incidences of CLABSIs dropped following of CHG bathing (ref 14). Further, it was possible to decrease patient nausea from 18 to 5% and vomiting to 0% (ref 5) while the percentage of patients who left the hospital without being seen was below 2% after the project (ref 17). In addition, a significant reduction in the prevalence of pressure ulcers was found (ref 26, ref 29) and a significant reduction of mucositis severity/distress was achieved (ref 24). Patient falls rate decreased (ref 15, ref 16, ref 19, ref 27).

Second, patient satisfaction level after project implementation improved (ref 28). The scale assessing healthcare providers by consumers showed improvement, but the changes were not statistically significant. Improvement in an emergency department leadership model and in methods of communication with patients improved patient satisfaction scores by 600% (ref 17). In addition, new evidence-based unit improved patient experiences about the unit although not all items improved significantly (ref 18).

Stakeholder involvement in the mixed-method review

To ensure stakeholders’ involvement in the review, the real-world relevance of our research [ 53 ], achieve a higher level of meaning in our review results, and gain new perspectives on our preliminary findings [ 50 ], a meeting with 11 stakeholders was organized. First, we asked if participants were aware of the concepts of evidence-based practice or evidence-based leadership. Responses revealed that participants were familiar with the concept of evidence-based practice, but the topic of evidence-based leadership was totally new. Examples of nurses and nurse leaders’ responses are as follows: “I have heard a concept of evidence-based practice but never a concept of evidence-based leadership.” Another participant described: “I have heard it [evidence-based leadership] but I do not understand what it means.”

Second, as stakeholder involvement is beneficial to the relevance and impact of health research [ 54 ], we asked how important evidence is to them in supporting decisions in health care services. One participant described as follows: “Using evidence in decisions is crucial to the wards and also to the entire hospital.” Third, we asked how the evidence-based approach is used in hospital settings. Participants expressed that literature is commonly used to solve clinical problems in patient care but not to solve leadership problems. “In [patient] medication and care, clinical guidelines are regularly used. However, I am aware only a few cases where evidence has been sought to solve leadership problems.”

And last, we asked what type of evidence is currently used to support nurse leaders’ decision making (e.g. scientific literature, organizational data, stakeholder views)? The participants were aware that different types of information were collected in their organization on a daily basis (e.g. patient satisfaction surveys). However, the information was seldom used to support decision making because nurse leaders did not know how to access this information. Even so, the participants agreed that the use of evidence from different sources was important in approaching any leadership or managerial problems in the organization. Participants also suggested that all nurse leaders should receive systematic training related to the topic; this could support the daily use of the evidence-based approach.

To our knowledge, this article represents the first mixed-methods systematic review to examine leadership problems, how evidence is used to solve these problems and what the perceived and measured effects of evidence-based leadership are on nurse leaders and their performance, organizational, and clinical outcomes. This review has two key findings. First, the available research data suggests that evidence-based leadership has potential in the healthcare context, not only to improve knowledge and skills among nurses, but also to improve organizational outcomes and the quality of patient care. Second, remarkably little published research was found to explore the effects of evidence-based leadership with an efficient trial design. We validated the preliminary results with nurse stakeholders, and confirmed that nursing staff, especially nurse leaders, were not familiar with the concept of evidence-based leadership, nor were they used to implementing evidence into their leadership decisions. Our data was based on many databases, and we screened a large number of studies. We also checked existing registers and databases and found no registered or ongoing similar reviews being conducted. Therefore, our results may not change in the near future.

We found that after identifying the leadership problems, 26 (84%) studies out of 31 used organizational data, 25 (81%) studies used scientific evidence from the literature, and 21 (68%) studies considered the views of stakeholders in attempting to understand specific leadership problems more deeply. However, only four studies critically appraised any of these findings. Considering previous critical statements of nurse leaders’ use of evidence in their decision making [ 14 , 30 , 31 , 34 , 55 ], our results are still quite promising.

Our results support a previous systematic review by Geert et al. [ 32 ], which concluded that it is possible to improve leaders’ individual-level outcomes, such as knowledge, motivation, skills, and behavior change using evidence-based approaches. Collins and Holton [ 23 ] particularly found that leadership training resulted in significant knowledge and skill improvements, although the effects varied widely across studies. In our study, evidence-based leadership was seen to enable changes in clinical practice, especially in patient care. On the other hand, we understand that not all efforts to changes were successful [ 56 , 57 , 58 ]. An evidence-based approach causes negative attitudes and feelings. Negative emotions in participants have also been reported due to changes, such as discomfort with a new working style [ 59 ]. Another study reported inconvenience in using a new intervention and its potential risks for patient confidentiality. Sometimes making changes is more time consuming than continuing with current practice [ 60 ]. These findings may partially explain why new interventions or program do not always fully achieve their goals. On the other hand, Dubose et al. [ 61 ] state that, if prepared with knowledge of resistance, nurse leaders could minimize the potential negative consequences and capitalize on a powerful impact of change adaptation.

We found that only six studies used a specific model or theory to understand the mechanism of change that could guide leadership practices. Participants’ reactions to new approaches may be an important factor in predicting how a new intervention will be implemented into clinical practice. Therefore, stronger effort should be put to better understanding the use of evidence, how participants’ reactions and emotions or practice changes could be predicted or supported using appropriate models or theories, and how using these models are linked with leadership outcomes. In this task, nurse leaders have an important role. At the same time, more responsibilities in developing health services have been put on the shoulders of nurse leaders who may already be suffering under pressure and increased burden at work. Working in a leadership position may also lead to role conflict. A study by Lalleman et al. [ 62 ] found that nurses were used to helping other people, often in ad hoc situations. The helping attitude of nurses combined with structured managerial role may cause dilemmas, which may lead to stress. Many nurse leaders opt to leave their positions less than 5 years [ 63 ].To better fulfill the requirements of health services in the future, the role of nurse leaders in evidence-based leadership needs to be developed further to avoid ethical and practical dilemmas in their leadership practices.

It is worth noting that the perceived and measured effects did not offer strong support to each other but rather opened a new venue to understand the evidence-based leadership. Specifically, the perceived effects did not support to measured effects (competence, ability to understand patients’ needs, use of resources, team effort, and specific clinical outcomes) while the measured effects could not support to perceived effects (nurse’s performance satisfaction, changes in practices, and clinical outcomes satisfaction). These findings may indicate that different outcomes appear if the effects of evidence-based leadership are looked at using different methodological approach. Future study is encouraged using well-designed study method including mixed-method study to examine the consistency between perceived and measured effects of evidence-based leadership in health care.

There is a potential in nursing to support change by demonstrating conceptual and operational commitment to research-based practices [ 64 ]. Nurse leaders are well positioned to influence and lead professional governance, quality improvement, service transformation, change and shared governance [ 65 ]. In this task, evidence-based leadership could be a key in solving deficiencies in the quality, safety of care [ 14 ] and inefficiencies in healthcare delivery [ 12 , 13 ]. As WHO has revealed, there are about 28 million nurses worldwide, and the demand of nurses will put nurse resources into the specific spotlight [ 1 ]. Indeed, evidence could be used to find solutions for how to solve economic deficits or other problems using leadership skills. This is important as, when nurses are able to show leadership and control in their own work, they are less likely to leave their jobs [ 66 ]. On the other hand, based on our discussions with stakeholders, nurse leaders are not used to using evidence in their own work. Further, evidence-based leadership is not possible if nurse leaders do not have access to a relevant, robust body of evidence, adequate funding, resources, and organizational support, and evidence-informed decision making may only offer short-term solutions [ 55 ]. We still believe that implementing evidence-based strategies into the work of nurse leaders may create opportunities to protect this critical workforce from burnout or leaving the field [ 67 ]. However, the role of the evidence-based approach for nurse leaders in solving these problems is still a key question.

Limitations

This study aimed to use a broad search strategy to ensure a comprehensive review but, nevertheless, limitations exist: we may have missed studies not included in the major international databases. To keep search results manageable, we did not use specific databases to systematically search grey literature although it is a rich source of evidence used in systematic reviews and meta-analysis [ 68 ]. We still included published conference abstract/proceedings, which appeared in our scientific databases. It has been stated that conference abstracts and proceedings with empirical study results make up a great part of studies cited in systematic reviews [ 69 ]. At the same time, a limited space reserved for published conference publications can lead to methodological issues reducing the validity of the review results [ 68 ]. We also found that the great number of studies were carried out in western countries, restricting the generalizability of the results outside of English language countries. The study interventions and outcomes were too different across studies to be meaningfully pooled using statistical methods. Thus, our narrative synthesis could hypothetically be biased. To increase transparency of the data and all decisions made, the data, its categorization and conclusions are based on original studies and presented in separate tables and can be found in Additional files. Regarding a methodological approach [ 34 ], we used a mixed methods systematic review, with the core intention of combining quantitative and qualitative data from primary studies. The aim was to create a breadth and depth of understanding that could confirm to or dispute evidence and ultimately answer the review question posed [ 34 , 70 ]. Although the method is gaining traction due to its usefulness and practicality, guidance in combining quantitative and qualitative data in mixed methods systematic reviews is still limited at the theoretical stage [ 40 ]. As an outcome, it could be argued that other methodologies, for example, an integrative review, could have been used in our review to combine diverse methodologies [ 71 ]. We still believe that the results of this mixed method review may have an added value when compared with previous systematic reviews concerning leadership and an evidence-based approach.

Our mixed methods review fills the gap regarding how nurse leaders themselves use evidence to guide their leadership role and what the measured and perceived impact of evidence-based leadership is in nursing. Although the scarcity of controlled studies on this topic is concerning, the available research data suggest that evidence-based leadership intervention can improve nurse performance, organizational outcomes, and patient outcomes. Leadership problems are also well recognized in healthcare settings. More knowledge and a deeper understanding of the role of nurse leaders, and how they can use evidence in their own managerial leadership decisions, is still needed. Despite the limited number of studies, we assume that this narrative synthesis can provide a good foundation for how to develop evidence-based leadership in the future.

Implications

Based on our review results, several implications can be recommended. First, the future of nursing success depends on knowledgeable, capable, and strong leaders. Therefore, nurse leaders worldwide need to be educated about the best ways to manage challenging situations in healthcare contexts using an evidence-based approach in their decisions. This recommendation was also proposed by nurses and nurse leaders during our discussion meeting with stakeholders.

Second, curriculums in educational organizations and on-the-job training for nurse leaders should be updated to support general understanding how to use evidence in leadership decisions. And third, patients and family members should be more involved in the evidence-based approach. It is therefore important that nurse leaders learn how patients’ and family members’ views as stakeholders are better considered as part of the evidence-based leadership approach.

Future studies should be prioritized as follows: establishment of clear parameters for what constitutes and measures evidence-based leadership; use of theories or models in research to inform mechanisms how to effectively change the practice; conducting robust effectiveness studies using trial designs to evaluate the impact of evidence-based leadership; studying the role of patient and family members in improving the quality of clinical care; and investigating the financial impact of the use of evidence-based leadership approach within respective healthcare systems.

Data availability

The authors obtained all data for this review from published manuscripts.

World Health Organization. State of the world’s nursing 2020: investing in education, jobs and leadership. 2020. https://www.who.int/publications/i/item/9789240003279 . Accessed 29 June 2024.

Hersey P, Campbell R. Leadership: a behavioral science approach. The Center for; 2004.

Cline D, Crenshaw JT, Woods S. Nurse leader: a definition for the 21st century. Nurse Lead. 2022;20(4):381–4. https://doi.org/10.1016/j.mnl.2021.12.017 .

Article   Google Scholar  

Chen SS. Leadership styles and organization structural configurations. J Hum Resource Adult Learn. 2006;2(2):39–46.

Google Scholar  

McKibben L. Conflict management: importance and implications. Br J Nurs. 2017;26(2):100–3.

Article   PubMed   Google Scholar  

Haghgoshayie E, Hasanpoor E. Evidence-based nursing management: basing Organizational practices on the best available evidence. Creat Nurs. 2021;27(2):94–7. https://doi.org/10.1891/CRNR-D-19-00080 .

Majers JS, Warshawsky N. Evidence-based decision-making for nurse leaders. Nurse Lead. 2020;18(5):471–5.

Tichy NM, Bennis WG. Making judgment calls. Harvard Business Rev. 2007;85(10):94.

Sousa MJ, Pesqueira AM, Lemos C, Sousa M, Rocha Á. Decision-making based on big data analytics for people management in healthcare organizations. J Med Syst. 2019;43(9):1–10.

Guo R, Berkshire SD, Fulton LV, Hermanson PM. %J L in HS. Use of evidence-based management in healthcare administration decision-making. 2017;30(3): 330–42.

Liang Z, Howard P, Rasa J. Evidence-informed managerial decision-making: what evidence counts?(part one). Asia Pac J Health Manage. 2011;6(1):23–9.

Hasanpoor E, Janati A, Arab-Zozani M, Haghgoshayie E. Using the evidence-based medicine and evidence-based management to minimise overuse and maximise quality in healthcare: a hybrid perspective. BMJ evidence-based Med. 2020;25(1):3–5.

Shingler NA, Gonzalez JZ. Ebm: a pathway to evidence-based nursing management. Nurs 2022. 2017;47(2):43–6.

Farokhzadian J, Nayeri ND, Borhani F, Zare MR. Nurse leaders’ attitudes, self-efficacy and training needs for implementing evidence-based practice: is it time for a change toward safe care? Br J Med Med Res. 2015;7(8):662.

Article   PubMed   PubMed Central   Google Scholar  

American Nurses Association. ANA leadership competency model. Silver Spring, MD; 2018.

Royal College of Nursing. Leadership skills. 2022. https://www.rcn.org.uk/professional-development/your-career/nurse/leadership-skills . Accessed 29 June 2024.

Kakemam E, Liang Z, Janati A, Arab-Zozani M, Mohaghegh B, Gholizadeh M. Leadership and management competencies for hospital managers: a systematic review and best-fit framework synthesis. J Healthc Leadersh. 2020;12:59.

Liang Z, Howard PF, Leggat S, Bartram T. Development and validation of health service management competencies. J Health Organ Manag. 2018;32(2):157–75.

World Health Organization. Global Strategic Directions for Nursing and Midwifery. 2021. https://apps.who.int/iris/bitstream/handle/10665/344562/9789240033863-eng.pdf . Accessed 29 June 2024.

NHS Leadership Academy. The nine leadership dimensions. 2022. https://www.leadershipacademy.nhs.uk/resources/healthcare-leadership-model/nine-leadership-dimensions/ . Accessed 29 June 2024.

Canadian Nurses Association. Evidence-informed decision-making and nursing practice: Position statement. 2018. https://hl-prod-ca-oc-download.s3-ca-central-1.amazonaws.com/CNA/2f975e7e-4a40-45ca-863c-5ebf0a138d5e/UploadedImages/documents/Evidence_informed_Decision_making_and_Nursing_Practice_position_statement_Dec_2018.pdf . Accessed 29 June 2024.

Hasanpoor E, Hajebrahimi S, Janati A, Abedini Z, Haghgoshayie E. Barriers, facilitators, process and sources of evidence for evidence-based management among health care managers: a qualitative systematic review. Ethiop J Health Sci. 2018;28(5):665–80.

PubMed   PubMed Central   Google Scholar  

Collins DB, Holton EF III. The effectiveness of managerial leadership development programs: a meta-analysis of studies from 1982 to 2001. Hum Res Dev Q. 2004;15(2):217–48.

Cummings GG, Lee S, Tate K, Penconek T, Micaroni SP, Paananen T, et al. The essentials of nursing leadership: a systematic review of factors and educational interventions influencing nursing leadership. Int J Nurs Stud. 2021;115:103842.

Clavijo-Chamorro MZ, Romero-Zarallo G, Gómez-Luque A, López-Espuela F, Sanz-Martos S, López-Medina IM. Leadership as a facilitator of evidence implementation by nurse managers: a metasynthesis. West J Nurs Res. 2022;44(6):567–81.

Young SK. Evidence-based management: a literature review. J Nurs Adm Manag. 2002;10(3):145–51.

Williams LL. What goes around comes around: evidence-based management. Nurs Adm Q. 2006;30(3):243–51.

Fraser I. Organizational research with impact: working backwards. Worldviews Evidence-Based Nurs. 2004;1:S52–9.

Roshanghalb A, Lettieri E, Aloini D, Cannavacciuolo L, Gitto S, Visintin F. What evidence on evidence-based management in healthcare? Manag Decis. 2018;56(10):2069–84.

Jaana M, Vartak S, Ward MM. Evidence-based health care management: what is the research evidence available for health care managers? Eval Health Prof. 2014;37(3):314–34.

Tate K, Hewko S, McLane P, Baxter P, Perry K, Armijo-Olivo S, et al. Learning to lead: a review and synthesis of literature examining health care managers’ use of knowledge. J Health Serv Res Policy. 2019;24(1):57–70.

Geerts JM, Goodall AH, Agius S, %J SS. Medicine. Evidence-based leadership development for physicians: a systematic literature review. 2020;246: 112709.

Barends E, Rousseau DM, Briner RB. Evidence-based management: The basic principles. Amsterdam; 2014. https://research.vu.nl/ws/portalfiles/portal/42141986/complete+dissertation.pdf#page=203 . Accessed 29 June 2024.

Stern C, Lizarondo L, Carrier J, Godfrey C, Rieger K, Salmond S, et al. Methodological guidance for the conduct of mixed methods systematic reviews. JBI Evid Synthesis. 2020;18(10):2108–18. https://doi.org/10.11124/JBISRIR-D-19-00169 .

Lancet T. 2020: unleashing the full potential of nursing. Lancet (London, England). 2019. p. 1879.

Välimäki MA, Lantta T, Hipp K, Varpula J, Liu G, Tang Y, et al. Measured and perceived impacts of evidence-based leadership in nursing: a mixed-methods systematic review protocol. BMJ Open. 2021;11(10):e055356. https://doi.org/10.1136/bmjopen-2021-055356 .

The Joanna Briggs Institute. Joanna Briggs Institute reviewers’ manual: 2014 edition. Joanna Briggs Inst. 2014; 88–91.

Pearson A, White H, Bath-Hextall F, Salmond S, Apostolo J, Kirkpatrick P. A mixed-methods approach to systematic reviews. JBI Evid Implement. 2015;13(3):121–31.

Johnson RB, Onwuegbuzie AJ. Mixed methods research: a research paradigm whose time has come. Educational Researcher. 2004;33(7):14–26.

Hong, Pluye P, Bujold M, Wassef M. Convergent and sequential synthesis designs: implications for conducting and reporting systematic reviews of qualitative and quantitative evidence. Syst Reviews. 2017;6(1):61. https://doi.org/10.1186/s13643-017-0454-2 .

Ramis MA, Chang A, Conway A, Lim D, Munday J, Nissen L. Theory-based strategies for teaching evidence-based practice to undergraduate health students: a systematic review. BMC Med Educ. 2019;19(1):1–13.

Sackett DL, Rosenberg WM, Gray JM, Haynes RB, Richardson WS. Evidence based medicine: what it is and what it isn’t. Bmj. British Medical Journal Publishing Group; 1996. pp. 71–2.

Goodman JS, Gary MS, Wood RE. Bibliographic search training for evidence-based management education: a review of relevant literatures. Acad Manage Learn Educ. 2014;13(3):322–53.

Aromataris E, Munn Z. Chapter 3: Systematic reviews of effectiveness. JBI Manual for Evidence Synthesis. 2020; https://synthesismanual.jbi.global .

Munn Z, Barker TH, Moola S, Tufanaru C, Stern C, McArthur A et al. Methodological quality of case series studies: an introduction to the JBI critical appraisal tool. 2020;18(10): 2127–33.

Hong Q, Pluye P, Fàbregues S, Bartlett G, Boardman F, Cargo M, et al. Mixed methods Appraisal Tool (MMAT) Version 2018: user guide. Montreal: McGill University; 2018.

McKenna J, Jeske D. Ethical leadership and decision authority effects on nurses’ engagement, exhaustion, and turnover intention. J Adv Nurs. 2021;77(1):198–206.

Maxwell M, Hibberd C, Aitchison P, Calveley E, Pratt R, Dougall N, et al. The TIDieR (template for intervention description and replication) checklist. The patient Centred Assessment Method for improving nurse-led biopsychosocial assessment of patients with long-term conditions: a feasibility RCT. NIHR Journals Library; 2018.

Braun V, Clarke V. Using thematic analysis in psychology. Qualitative Res Psychol. 2006;3(2):77–101.

Pollock A, Campbell P, Struthers C, Synnot A, Nunn J, Hill S, et al. Stakeholder involvement in systematic reviews: a scoping review. Syst Reviews. 2018;7:1–26.

Braye S, Preston-Shoot M. Emerging from out of the shadows? Service user and carer involvement in systematic reviews. Evid Policy. 2005;1(2):173–93.

Page MJ, McKenzie JE, Bossuyt PM, Boutron I, Hoffmann TC, Mulrow CD, et al. The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. Syst Reviews. 2021;10(1):1–11.

Porta M. Pilot investigation, study. A dictionary of epidemiology. Oxford University Press Oxford; 2014. p. 215.

Kreis J, Puhan MA, Schünemann HJ, Dickersin K. Consumer involvement in systematic reviews of comparative effectiveness research. Health Expect. 2013;16(4):323–37.

Joseph ML, Nelson-Brantley HV, Caramanica L, Lyman B, Frank B, Hand MW, et al. Building the science to guide nursing administration and leadership decision making. JONA: J Nurs Adm. 2022;52(1):19–26.

Gifford W, Davies BL, Graham ID, Tourangeau A, Woodend AK, Lefebre N. Developing Leadership Capacity for Guideline Use: a pilot cluster Randomized Control Trial: Leadership Pilot Study. Worldviews Evidence-Based Nurs. 2013;10(1):51–65. https://doi.org/10.1111/j.1741-6787.2012.00254.x .

Hsieh HY, Henker R, Ren D, Chien WY, Chang JP, Chen L, et al. Improving effectiveness and satisfaction of an electronic charting system in Taiwan. Clin Nurse Specialist. 2016;30(6):E1–6. https://doi.org/10.1097/NUR.0000000000000250 .

McAllen E, Stephens K, Swanson-Biearman B, Kerr K, Whiteman K. Moving Shift Report to the Bedside: an evidence-based Quality Improvement Project. OJIN: Online J Issues Nurs. 2018;23(2). https://doi.org/10.3912/OJIN.Vol23No02PPT22 .

Thomas M, Autencio K, Cesario K. Positive outcomes of an evidence-based pressure injury prevention program. J Wound Ostomy Cont Nurs. 2020;47:S24.

Cullen L, Titler MG. Promoting evidence-based practice: an internship for Staff nurses. Worldviews Evidence-Based Nurs. 2004;1(4):215–23. https://doi.org/10.1111/j.1524-475X.2004.04027.x .

DuBose BM, Mayo AM. Resistance to change: a concept analysis. Nursing forum. Wiley Online Library; 2020. pp. 631–6.

Lalleman PCB, Smid GAC, Lagerwey MD, Shortridge-Baggett LM, Schuurmans MJ. Curbing the urge to care: a bourdieusian analysis of the effect of the caring disposition on nurse middle managers’ clinical leadership in patient safety practices. Int J Nurs Stud. 2016;63:179–88.

Article   CAS   PubMed   Google Scholar  

Martin E, Warshawsky N. Guiding principles for creating value and meaning for the next generation of nurse leaders. JONA: J Nurs Adm. 2017;47(9):418–20.

Griffiths P, Recio-Saucedo A, Dall’Ora C, Briggs J, Maruotti A, Meredith P, et al. The association between nurse staffing and omissions in nursing care: a systematic review. J Adv Nurs. 2018;74(7):1474–87. https://doi.org/10.1111/jan.13564 .

Lúanaigh PÓ, Hughes F. The nurse executive role in quality and high performing health services. J Nurs Adm Manag. 2016;24(1):132–6.

de Kok E, Weggelaar-Jansen AM, Schoonhoven L, Lalleman P. A scoping review of rebel nurse leadership: descriptions, competences and stimulating/hindering factors. J Clin Nurs. 2021;30(17–18):2563–83.

Warshawsky NE. Building nurse manager well-being by reducing healthcare system demands. JONA: J Nurs Adm. 2022;52(4):189–91.

Paez A. Gray literature: an important resource in systematic reviews. J Evidence-Based Med. 2017;10(3):233–40.

McAuley L, Tugwell P, Moher D. Does the inclusion of grey literature influence estimates of intervention effectiveness reported in meta-analyses? Lancet. 2000;356(9237):1228–31.

Sarah S. Introduction to mixed methods systematic reviews. https://jbi-global-wiki.refined.site/space/MANUAL/4689215/8.1+Introduction+to+mixed+methods+systematic+reviews . Accessed 29 June 2024.

Whittemore R, Knafl K. The integrative review: updated methodology. J Adv Nurs. 2005;52(5):546–53.

Download references

Acknowledgements

We want to thank the funding bodies, the Finnish National Agency of Education, Asia Programme, the Department of Nursing Science at the University of Turku, and Xiangya School of Nursing at the Central South University. We also would like to thank the nurses and nurse leaders for their valuable opinions on the topic.

The work was supported by the Finnish National Agency of Education, Asia Programme (grant number 26/270/2020) and the University of Turku (internal fund 26003424). The funders had no role in the study design and will not have any role during its execution, analysis, interpretation of the data, decision to publish, or preparation of the manuscript.

Author information

Authors and affiliations.

Department of Nursing Science, University of Turku, Turku, FI-20014, Finland

Maritta Välimäki, Tella Lantta, Kirsi Hipp & Jaakko Varpula

School of Public Health, University of Helsinki, Helsinki, FI-00014, Finland

Maritta Välimäki

Xiangya Nursing, School of Central South University, Changsha, 410013, China

Shuang Hu, Jiarui Chen, Yao Tang, Wenjun Chen & Xianhong Li

School of Health and Social Services, Häme University of Applied Sciences, Hämeenlinna, Finland

Hunan Cancer Hospital, Changsha, 410008, China

Gaoming Liu

You can also search for this author in PubMed   Google Scholar

Contributions

Study design: MV, XL. Literature search and study selection: MV, KH, TL, WC, XL. Quality assessment: YT, SH, XL. Data extraction: JC, MV, JV, WC, YT, SH, GL. Analysis and interpretation: MV, SH. Manuscript writing: MV. Critical revisions for important intellectual content: MV, XL. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Xianhong Li .

Ethics declarations

Ethics approval and consent to participate.

No ethical approval was required for this study.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Differences between the original protocol

We modified criteria for the included studies: we included published conference abstracts/proceedings, which form a relatively broad knowledge base in scientific knowledge. We originally planned to conduct a survey with open-ended questions followed by a face-to-face meeting to discuss the preliminary results of the review. However, to avoid extra burden in nurses due to COVID-19, we decided to limit the validation process to the online discussion only.

Additional information

Publisher’s note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Electronic supplementary material

Below is the link to the electronic supplementary material.

Supplementary Material 1

Supplementary material 2, supplementary material 3, supplementary material 4, supplementary material 5, supplementary material 6, supplementary material 7, supplementary material 8, supplementary material 9, supplementary material 10, rights and permissions.

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ . The Creative Commons Public Domain Dedication waiver ( http://creativecommons.org/publicdomain/zero/1.0/ ) applies to the data made available in this article, unless otherwise stated in a credit line to the data.

Reprints and permissions

About this article

Cite this article.

Välimäki, M., Hu, S., Lantta, T. et al. The impact of evidence-based nursing leadership in healthcare settings: a mixed methods systematic review. BMC Nurs 23 , 452 (2024). https://doi.org/10.1186/s12912-024-02096-4

Download citation

Received : 28 April 2023

Accepted : 13 June 2024

Published : 03 July 2024

DOI : https://doi.org/10.1186/s12912-024-02096-4

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Evidence-based leadership
• Health services administration
• Organizational development
• Quality in healthcare

BMC Nursing

ISSN: 1472-6955

• General enquiries: [email protected]

Empowering Employees: Unlocking Their Intellectual Capital

Many believe that the public lacks the intelligence and nuance necessary for complex problem-solving and decision-making. Consequently, businesses have adopted a strategy of dumbing down work and treating employees like children.

However, this approach neglects the intellectual capital that employees possess. In this article, we will explore the impact of this infantilization on decision-making and problem-solving, as well as the risk management implications.

By empowering employees and recognizing their capabilities, businesses can tap into their intellectual capital and unleash innovative solutions for success.

Table of Contents

Key Takeaways

• Perception of public intelligence and business dumbing down leads to assumptions of the public preferring simple solutions and lacking nuance.
• Infantilization of work and lack of trust in employees’ abilities result in employees being treated as children rather than adults.
• Dumbing down affects decision making and problem solving, favoring simplistic approaches over complex analysis and discouraging nuanced thinking.
• Dumbing down has implications for risk management, including a lack of critical thinking in assessing risks and overreliance on prescribed solutions, which contradicts the recognition of employee skills and knowledge.

The Perception of Public Intelligence and Business Dumbing Down

The public is often treated as less intelligent, with an assumption that they prefer simple solutions and lack nuance, while businesses are also experiencing a dumbing down trend. This perception of public intelligence is perpetuated by media portrayal, where complex issues are often oversimplified for mass consumption.

This oversimplification undermines the public’s ability to engage in informed discussions and contribute to innovative solutions. Similarly, businesses are also contributing to this trend by dumbing down their management practices. Instead of emphasizing critical thinking and intellectual capital, management is increasingly taught through parables and simplistic approaches.

This contradiction is problematic as businesses recognize the value of employee skills and knowledge as intellectual capital, yet fail to trust and empower their workforce to think critically and problem solve.

To foster innovation, it is crucial to challenge the perception of public intelligence and promote a culture that values and harnesses the intellectual capital of both the public and businesses.

Infantilization of Work and Lack of Trust in Employees’ Abilities

Managers contribute to the infantilization of work by treating employees as children rather than adults and lacking trust in their abilities. This approach hinders the empowerment benefits that come from treating employees as capable and independent thinkers.

When managers treat employees as children, they undermine their confidence and hinder their ability to contribute innovative ideas and problem-solving skills.

Building trust is essential in creating a work environment that encourages employees to take risks, share their opinions, and think critically. By trusting employees and recognizing their capabilities, managers can unlock their intellectual capital and foster a culture of innovation.

Empowering employees not only benefits the individuals themselves, but also leads to better decision-making, problem-solving, and ultimately, organizational success. It is crucial for managers to shift their mindset and treat employees as adults, building trust and harnessing their full potential.

Impact on Decision Making and Problem Solving

By favoring simplistic approaches and discouraging nuanced thinking, the dumbing down of decision making and problem solving undermines the potential for innovative solutions. This trend has several implications for unleashing creativity and fostering collaboration in the workplace:

Loss of diverse perspectives: When decision making and problem solving are simplified, opportunities for diverse perspectives and creative ideas are often overlooked. This can stifle innovation and limit the range of potential solutions.

Lack of collaboration: Nuanced thinking encourages collaboration and the exchange of ideas. However, when decision making is simplified, collaboration may be discouraged, leading to missed opportunities for collective problem solving and creativity.

Inhibition of risk-taking: Simplistic approaches tend to prioritize risk aversion over taking calculated risks. This can hinder the exploration of new ideas and limit the potential for breakthrough solutions.

To truly unleash creativity and foster collaboration, organizations must recognize the importance of nuanced thinking in decision making and problem solving. By embracing complexity and encouraging diverse perspectives, innovative solutions can be achieved.

Risk Management Implications

Favoring simplistic approaches and discouraging nuanced thinking in decision making and problem solving undermines the potential for innovative solutions. This has significant implications for risk management.

The lack of critical thinking and overreliance on prescribed solutions can hinder the identification and assessment of risks. When decision makers fail to consider potential consequences and solely rely on predetermined solutions, they limit their ability to effectively manage risks.

This approach overlooks the complexity and interconnectedness of various factors that contribute to risk. It also ignores the importance of thorough analysis and critical evaluation in identifying potential risks and developing appropriate mitigation strategies.

Importance of Treating Employees Like Adults

Treating employees with respect and trusting their capabilities fosters a culture of independence and encourages innovative thinking. This approach has several benefits for both the employees and the organization:

Enhanced productivity: When employees feel trusted and respected, they are more motivated to perform their best. They take ownership of their work and strive for excellence, leading to increased productivity.

Fostering creativity: By empowering employees and valuing their input, organizations create an environment where new ideas can flourish. When employees feel safe to express their thoughts and opinions, they are more likely to think outside the box and come up with innovative solutions.

Improved employee satisfaction and retention: When employees are treated like adults, they feel valued and appreciated. This leads to higher job satisfaction and a stronger commitment to the organization. As a result, employees are more likely to stay with the company, reducing turnover and ensuring continuity of knowledge and expertise.

Enhancing Performance Through Trust and Independence

In the previous subtopic, the importance of treating employees like adults was discussed. This emphasized the need to trust and recognize their capabilities.

Building on this, the current subtopic explores how enhancing performance can be achieved through trust and independence. Trust is a crucial factor in empowering employees and unlocking their intellectual capital. When employees feel trusted, they are more likely to take ownership of their work, think critically, and make informed decisions.

This trust fosters a sense of empowerment, allowing individuals to tap into their full potential and contribute innovative ideas. Independence further enhances performance by giving employees the freedom to explore different approaches and take calculated risks.

Encouraging Independent Thinking and Decision Making

Encouraging independent thinking and decision making allows individuals to take ownership of their work and contribute innovative ideas. This approach maximizes potential and fosters creativity in employees. By empowering individuals to think for themselves and make decisions, organizations create an environment where new and unique solutions can emerge.

To truly unlock the intellectual capital of employees, it is important to cultivate a culture of autonomy. Giving employees the freedom to think independently and make decisions helps them feel valued and trusted. This autonomy encourages them to explore new ideas and take risks, leading to increased creativity and problem-solving skills.

In addition to autonomy, providing resources and support is crucial. Employees need access to the necessary resources and support to foster independent thinking. This includes providing training, tools, and mentorship opportunities to help them develop their skills and knowledge.

Furthermore, encouraging collaboration and diverse perspectives is essential. Actively promoting collaboration and seeking out diverse perspectives can enhance independent thinking and decision making. By bringing together individuals with different backgrounds and experiences, organizations can foster a culture of innovation and creativity.

Recognizing Employees’ Capabilities and Expertise

Recognizing the capabilities and expertise of individuals within an organization is essential for fostering a culture of innovation and maximizing productivity. By acknowledging and valuing the unique skills and knowledge that employees bring to the table, organizations can unleash their full potential and foster expertise.

This recognition not only empowers employees, but also creates an environment that encourages innovation and creativity. When employees feel that their capabilities are recognized and valued, they are more likely to contribute their expertise and ideas to the organization. This, in turn, leads to increased productivity and improved problem-solving capabilities.

Aligning With the Value of Employee Skills and Knowledge

Valuing and leveraging the skills and knowledge of employees is crucial for organizations aiming to optimize their potential and drive success in today’s dynamic business environment. To align with the value of employee skills and knowledge, organizations should focus on two key areas: employee autonomy and knowledge sharing.

Employee Autonomy: Granting employees autonomy in decision-making and allowing them to have control over their work empowers them to utilize their skills and knowledge effectively. This autonomy fosters a sense of ownership, motivation, and innovation among employees, leading to increased productivity and better outcomes.

Knowledge Sharing: Encouraging a culture of knowledge sharing enables employees to tap into their collective expertise. By creating platforms and opportunities for employees to share their knowledge, organizations can harness their intellectual capital and promote continuous learning. This exchange of ideas and information sparks innovation and drives organizational growth.

Unleashing Innovative Solutions Through Empowerment

Granting employees autonomy and trusting in their abilities fosters a culture of innovation and empowers them to unleash innovative solutions. When employees are given the freedom to explore their ideas and take ownership of their work, they are more likely to unleash their creativity and come up with innovative solutions.

By fostering a culture of innovation, organizations can tap into the diverse perspectives and unique talents of their employees, leading to breakthrough ideas and improved problem-solving.

Empowering employees to innovate not only benefits the organization but also boosts employee morale and engagement. It sends a message that their ideas and contributions are valued, leading to increased job satisfaction and retention.

In today’s fast-paced and competitive business environment, organizations that prioritize empowering their employees are more likely to stay ahead of the curve and drive meaningful innovation.

Maximizing Intellectual Capital: A Path to Success

Maximizing intellectual capital is crucial for organizations aiming to achieve long-term success and maintain a competitive edge in the market. To unlock the full potential of their workforce and drive innovation, organizations must focus on maximizing productivity and fostering creativity.

Here are three key strategies to achieve this:

Encourage a culture of continuous learning: Organizations should provide opportunities for employees to acquire new knowledge and skills through training programs, workshops, and collaborative projects. This not only enhances productivity but also stimulates creativity by exposing employees to diverse perspectives and ideas.

Foster a supportive and inclusive work environment: Creating an environment where employees feel valued, respected, and empowered promotes creativity. Encouraging open communication, collaboration, and autonomy allows individuals to express their ideas freely and contribute to problem-solving and decision-making processes.

Embrace technology and tools: Leveraging technology can streamline processes, automate repetitive tasks, and free up time for employees to focus on more creative and strategic initiatives. Providing employees with the right tools and resources enables them to maximize their productivity and unleash their innovative potential.

Frequently Asked Questions

How does the perception of public intelligence affect decision making and problem solving in business.

The perception of public intelligence can impact decision making and problem solving in business. If the public is seen as less intelligent, simplistic approaches may be favored over complex analysis, potentially hindering innovation.

What Are the Potential Consequences of Overreliance on Prescribed Solutions in Risk Management?

Overreliance on prescribed solutions in risk management can lead to potential consequences. It limits innovative thinking and overlooks unique solutions. Businesses should encourage a more open-minded approach to ensure effective risk management.

How Can Treating Employees as Adults Enhance Their Performance?

Treating employees as equals and empowering autonomy can enhance their performance. It fosters a sense of trust and independence, allowing for innovative thinking and decision-making. Recognizing their expertise and capabilities aligns with the value of employee skills and knowledge as intellectual capital.

What Are Some Ways That Businesses Can Encourage Independent Thinking and Decision Making Among Their Employees?

Businesses can encourage independent thinking and decision making among employees by fostering a culture of creativity and innovation, empowering them to take risks, providing opportunities for learning and growth, and recognizing and rewarding their contributions and ideas.

How Does Recognizing Employees’ Capabilities and Expertise Contribute to Maximizing Intellectual Capital in a Company?

Recognizing employees’ capabilities and expertise enhances their performance and fosters innovation. By valuing their knowledge and skills, companies can tap into their intellectual capital, maximizing their potential for creativity and problem-solving.

Advanced search

• Journals & magazines
• Conferences
• Collections
• Forgotten password?

Not registered yet?

• Register now to save searches and create alerts

Login to add to favourites

Save links to your favourite articles.

• Create email alert
• N New content
• Free content
• Open access content
• Subscribed content
• Trial content

Collision risk assessment for floating nuclear power plants using a novel approach of Bayesian network and interval type-2 fuzzy sets

• Author(s): C. Guo 1 ; K. Liu 1 ; W. Wu 1, 2
• DOI:  10.1049/icp.2024.0195

For access to this article, please select a purchase option:

Buy conference paper PDF

Buy knowledge pack.

IET members benefit from discounts to all IET publications and free access to E&T Magazine. If you are an IET member, log in to your account and the discounts will automatically be applied.

Learn more about IET membership 

You must fill out fields marked with: *

Your recommendation has been sent to your librarian.

• Affiliations: 1: School of Mechanics and Aerospace Engineering, Dalian University of Technology , Dalian , People's Republic of China ; 2: Ningbo Institute of Dalian University of Technology , Ningbo , People's Republic of China
• Conference: International Joint Conference on Civil and Marine Engineering (JCCME 2023)
• « Previous article
• Table of contents
• Next article »
• References (0)
• Supplementary material (0)
• Related Content
• ISBN : 978-1-83724-024-1
• Location: Dalian, China
• Conference date: 3-6 November 2023
• Format: PDF

Floating nuclear power plants (FNPPs) are an organic integration of smaller nuclear reactors and ship engineering, and there are currently no design codes related to FNPPs at home or abroad. Among them, ship collision is an important external event in the design of FNPPs, which has a significant impact on their safety. In order to solve the problem of collision risk faced by FNPPs, a risk analysis method is proposed using a combination of Bayesian network (BN) and interval type-2 fuzzy sets (IT2FS). The method adopts a fault tree to represent the hierarchical relationship of the risk system and maps it to a Bayesian network structure. IT2FS theory and expert evaluation are used to overcome the limitations of the lack of objective statistical data and incomplete knowledge, and the parameters of the fuzzy Bayesian network are determined based on a discrete aggregation method (DAM). In this work, taking China's first FNPP as a case study to validate the proposed approach, causal inference analysis, diagnostic inference analysis and sensitivity analysis are performed for the established fuzzy Bayesian network model enables the identification of key risk factors of collision. At the same time, targeted risk control measures are given to provide reference for on-site operation and management personnel.

Inspec keywords: fault trees ; ships ; risk management ; sensitivity analysis ; nuclear power stations ; fuzzy set theory ; inference mechanisms ; power engineering computing ; belief networks ; Bayes methods ; offshore installations ; risk analysis

Subjects: Other topics in statistics ; Other topics in statistics ; Combinatorial mathematics ; Combinatorial mathematics ; Nuclear power stations and plants ; Reasoning and inference techniques ; Power engineering computing ; Knowledge representation

Related content

• View sitemap
• Legal notices
• Accessibility
• Privacy statement
• Copyright & permissions

All contents © The Institution of Engineering and Technology 2024

• The Institution of Engineering and Technology is registered as a Charity in England & Wales (no 211014) and Scotland (no SC038698)