Discomfort is Critical to Effective Risk Management

Risk management requires businesses to confront potential vulnerabilities, inefficiencies, and hazards directly. As risk management consultants, our goal isn’t to provide comfort but to challenge organisations to address the realities that may be uncomfortable to discuss. To achieve a mature risk framework, leaders must engage in candid conversations about all possibilities—especially the ones that feel challenging or risky to acknowledge.

Embracing discomfort is essential for effective risk management. Leaders who are curious enough and comfortable enough to be uncomfortable will be the ones that adequately “plan to fail.” They’ll recognise flaws in their systems with no ego, no false beliefs, and a genuine willingness to improve.

The Sphere of Discomfort in Risk Management

The fear of confronting uncomfortable truths exists at all levels of an organisation:

1. Managers Hesitant to Address Employee Concerns

Many managers feel uneasy about having difficult conversations with their staff. Whether it’s addressing near-misses, unsafe work practices, or procedural deviations, the discomfort of these discussions can lead to avoidance. According to a study by the Institute of Risk Management (IRM):

“A culture of fear and blame can stifle communication and prevent the reporting of critical issues.” IRM, 2023

2. Workers Reluctant to Speak Up

Employees may feel uncomfortable raising safety concerns due to fear of retaliation or being perceived as troublemakers. Research from Safe Work Australia indicates that psychological safety is a critical factor in workplace safety reporting. When workers feel unable to speak up, risks go unreported, creating blind spots in the organisation’s risk management processes. Safe Work Australia

3. Executives Wary of Engaging with Industry Bodies and Experts

Leaders may feel uncomfortable engaging with external experts or regulatory bodies, especially when gaps in their systems are likely to be exposed. Fear of reputational damage or financial implications can prevent valuable partnerships and learning opportunities that could significantly enhance operational risk management.

4. Leaders Uncomfortable Challenging Budgets and Business Plans

Challenging existing budgets and business plans is a necessary but often uncomfortable task. Leaders who avoid questioning established processes or financial allocations may fail to identify critical risks or resource gaps. According to a study by the Australian Institute of Health & Safety (AIHS):

“Organisations that regularly challenge their own assumptions are more resilient and adaptable in the face of unforeseen operational challenges.” AIHS, 2024

The Risk Management Cycle and the Cost of Avoiding Discomfort

Avoiding uncomfortable discussions impacts every phase of the risk management cycle:

1. Purpose and Scope

If leadership avoids uncomfortable conversations about objectives and risk appetite, the organisation may lack clear direction. When risk tolerance is not discussed, businesses may unknowingly accept higher levels of risk than intended.

2. Context

Failing to consider all relevant external and internal factors due to discomfort or reluctance to challenge assumptions can lead to inadequate understanding of the operational environment.

3. Risk Identification

A reluctance to speak up can result in critical threats being overlooked. If workers are uncomfortable reporting unsafe conditions or near-misses, these risks remain unidentified until they cause harm.

4. Risk Assessment

Avoiding rigorous analysis or challenging established metrics may lead to underestimating or overestimating risks. This can result in misaligned priorities and inadequate resource allocation.

5. Control Identification and Implementation

Identifying and implementing controls without robust discussion about their adequacy or effectiveness often results in inadequate or inappropriate safeguards. Leaders who are uncomfortable challenging their own decisions may implement controls that provide a false sense of security.

6. Assurance

Avoiding uncomfortable reviews or audits due to fear of finding failures can compromise the integrity of risk management systems. Assurance processes should be thorough and unbiased, even if it means uncovering uncomfortable truths. Be wary of leaders that resist assurance over their systems, processes and decisions.

7. Governance

Leaders who avoid tough conversations about accountability or oversight risk creating an environment where critical failures go unnoticed or unaddressed. Strong governance requires open communication and the willingness to challenge assumptions.

The Danger of Complacency: The “Nothing Will Go Wrong” Mindset

A common thread throughout all stages of risk management is the pervasive belief that “nothing will go wrong.” This complacency, often driven by a fear of confronting uncomfortable realities, can have catastrophic consequences. Complacency allows latent risks to grow unchecked, often until they result in significant incidents or crises.

In high-risk industries, complacency can be particularly dangerous. Research from the Australian Government’s Department of Industry, Science, Energy and Resources highlights that operational failures are often the result of unaddressed risks that were known but not acted upon due to a lack of organisational willingness to face uncomfortable truths. DISER, 2024

Embracing Discomfort as a Strength

Effective operational risk management requires leaders who are willing to feel uncomfortable.

They must have the courage to:

Question established practices and budgets.
Engage with employees and encourage open reporting of risks.
Invite external scrutiny and feedback.
Regularly challenge their own assumptions and processes.

By embracing discomfort, organisations can build resilience, improve safety, and enhance their overall risk management frameworks.

Final Thoughts

Risk management is not about comfort; it’s about vigilance, transparency, and courage. To achieve resilience, organisations must challenge their own assumptions and engage in difficult conversations. Leaders who foster a culture of openness and embrace discomfort as a strength will be the ones who succeed.

Discomfort is Critical to Effective Risk Management

Contact us today to build a resilient risk management framework that embraces discomfort and drives success. We aren't afraid to have difficult and uncomfortable conversations.

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