How I Have Managed Risk My experiences have given me a clear appreciation for importance of systematic and robust risk management. What I talk about next is how I identified, evaluated, and mitigated various risks at three different companies in three different industries.

While I managed a Midwestern real estate portfolio for Cohen-Esrey, risk emerged in several areas. The easiest risks to identify and mitigate were hazard points, such as fire and water damage for an apartment building. More complex issues, such as “Slips and Falls” on icy steps required us to put traditional insurance in place with a covenant that said employees would also work to minimize any liability by removing snow in a timely fashion. Other problems and solutions were less clear cut. At one point we had issues with employees “walking off” with tools from property workshops. To mitigate this problem, we restructured our recruitment and selection process. Vendor relationships also became a liability issue. Only clear communication on a timely basis minimized such vulnerability.

Although most small businesses won’t encounter risks I mitigated at HSBC brokering financial derivatives, experience built my appreciation for risk. Our team worked on behalf of many global banks hedging financial market risk. Although market place conventions and contracts were similar, each transaction was done for a different reason. We analyzed interest rate environment, advised traders as to how to better hedge their risk, and then brokered very large transactions. These experiences instilled in me importance of understanding and transferring risk.

Managing a Customer Relationship Project for Reuters is where my risk management became a formalized business process. My job was to coordinate and implement a CRM initiative that stretched over 10 months and included staff on several continents. To better understand what issues would affect timetable and budget, team put together a Risk Matrix. This illustrated three key issues: what each risk point was, its’ potential occurrence and severity, and who was responsible for mitigating it. At every meeting team would review Risk Matrix and identify any future risk points. As with most projects, communication is key, and this encouraged a high degree of communication and accountability.

Risk is embedded in every opportunity a business faces, and poor risk management can have profound effects on outcome of any business endeavor.

Putting an effective risk management system in place is first step for a small business owner, who can then confidently exploit new business opportunities.

While I managed a portfolio of Midwestern properties for Cohen-Esrey, I oversaw a team of twenty-five employees. Each property within portfolio had individuals on-site managing day to day operations. I met often with teams for two reasons: •To collaborate on business objectives for property. •To ensure that these objectives were clearly communicated. I rarely involved myself with decisions that directly affected day to day operation of building. This allowed manager to have a clear sense of their role and accountability. Finally, I encouraged these managers to communicate within their professional peer group; this encouraged joint problem solving and knowledge sharing. These actions led to tangible result of lower employee turnover.

While at Reuters in London undertaking a Customer Relationship Management project, I led a team of five individuals. Each of us had different skill sets and internal reporting lines, which made for a complex situation. Early in project, we clearly defined roles of each participant, and deliverables of project. Communication was extensive, but we still experienced a lack of trust at times. This was resolved through impromptu, non-confrontational face to face meetings, and short, weekly progress meetings. Despite challenges to project, team implemented CRM deliverable, resulting in higher customer loyalty.

While I worked in Singapore, I worked with a culturally diverse team. Our task was to develop more business for HSBC from Asian region. To do this, Americans, Australians, and local Chinese needed to communicate clearly. Surprisingly, I found that best way to develop a cohesive team was to dine out together as a group. Once we all understood each other on an informal basis, our communication and collaboration improved dramatically.

In summary, effective teams have three aspects in common: Productive climate, clear roles, and principled leadership. Although developing each aspect can be challenging, rewards of higher profits are worth effort.