What’s that expression, a change is just as good as a rest? Sometimes, when our careers hit a roadblock, taking a different path can provide the rest and reset we need. As someone who experienced setbacks in the financial services industry, I found myself in need of a break and a chance to refocus on my career goals. So, I decided to take on a unique challenge – working on a factory floor. Little did I know that this experience would not only provide the rest I needed but also challenge my assumptions about risk management and compliance. In this article, I will share my journey of spending a year on the factory floor, the lessons I learned, and how my assumptions about risk management were both confirmed and changed.
A New Perspective on Risk Management
One of the main motivations behind my decision to work on the factory floor was to experience a completely different compliance and risk management structure outside of the financial services industry. I wanted to challenge my assumptions and see if risk management and compliance could be used as a business partner rather than a hindrance to growth. To my surprise, I discovered that risk management can indeed be a driving force for a company’s success. While it may not be explicitly labeled as risk management, the concept of continuous improvement on the factory floor is essentially a form of risk management in action. By constantly reviewing processes, seeking upgrades, and eliminating waste, the focus is on identifying and mitigating risks, whether positive or negative.
Continuous Improvement: A Form of Risk Management
Continuous improvement is a core principle on the factory floor. It involves regularly observing and analyzing processes to identify areas for improvement. This focus on continuous improvement also highlights potential risks and provides an opportunity to address them. By constantly striving to reduce negative risks and capitalize on positive risks, the factory floor embraces risk management in its pursuit of excellence. This experience challenged my assumption that risk management and continuous improvement were fundamentally separate concepts. In reality, they are closely intertwined, with continuous improvement serving as a practical application of risk management principles.
Transferable Leadership Skills
Another assumption I had was that good risk management leadership skills were specific to the financial services industry. However, my time on the factory floor proved otherwise. The skill sets required to nurture and foster a culture of continuous improvement are remarkably similar to those needed to lead a risk management process in any industry. Effective communication, the ability to analyze data, and the talent for motivating and inspiring teams are all essential qualities for successful risk management leadership. This realization shattered my preconceived notion that risk management skills were confined to a particular sector.
Oil and Water: The Relationship Between Risk Management and Other Departments
One assumption that still holds some merit is the belief that risk management and compliance departments are like oil and water, unable to mix seamlessly with other departments. During conversations with project managers, I noticed some reluctance and hesitation to fully embrace the risk management process. However, I also observed that when their performance bonuses were tied to project delivery, adherence to the risk management program became a priority. The promise of a year-end bonus incentivized project managers, even if they didn’t fully appreciate the value of risk management. This observation confirmed that, to some extent, there is still a divide between risk management and other departments. However, it also highlighted the importance of aligning incentives to encourage the integration of risk management practices throughout the organization.
Conclusion
In conclusion, my year on the factory floor provided more than just a career rest and reset. It shattered some assumptions while confirming others. I discovered that risk management can be a powerful business partner, driving continuous improvement and success. The leadership skills required for effective risk management are transferable across industries, challenging the notion of specialization. Additionally, while there may still be some resistance to the integration of risk management in certain departments, aligning incentives can bridge the gap. Overall, my journey on the factory floor has given me a fresh perspective on risk management and paved the way for a more holistic approach to business growth and success.
Please let me know if you have had the same experience, and how you coped?