Limiting Risk: Essential Skills for Navigating Uncertainty in Business

by | Jun 8, 2024

In a rapidly changing and unpredictable world, limiting risk is a critical competency. The “Limits Risk” category includes skills and behaviors that help organizations avoid negative outcomes and achieve success with responsible governance. These skills are essential for thriving in today’s complex business landscape.

Scanning for Political and Internal Impacts: A Global Perspective on Limiting Risk

Understanding broader political, social, and economic factors is crucial for maneuvering through complex situations. In today’s interconnected world, global thinking, awareness of regulations, and environmental concerns are vital. Therefore, businesses must adapt to changing laws, regulations, and societal demands. According to a survey by Deloitte, 74% of executives believe that government and regulatory agencies are their most influential stakeholders. Consequently, businesses must proactively shape their strategies to stay ahead.

Learn more about global thinking.

Managing Risk: A Strategic Imperative for Business Success

The Importance of Risk Management

Risk management is not a matter of if but when and how. According to the Project Management Institute (PMI), 53% of organizations report an increase in project failures. This statistic shows the growing importance of forecasting, evaluating, and mitigating risks to achieve objectives. Effective risk management involves constant monitoring, assessment, and impact analysis. These steps are essential for preventing losses and seizing opportunities that may otherwise be overlooked.

Discover strategic risk management techniques.

Reasoning Critically and Solving Problems: Key to Limiting Risk

Core Skills for Risk Limitation

Root cause analysis, critical thinking, and problem-solving are essential for any successful business operation. According to a study by the World Economic Forum, problem-solving is one of the top skills required by organizations today. It’s not merely about finding solutions; rather, it’s about doing so proactively with logical reasoning. Furthermore, the ability to resolve conflicts, analyze financial implications, and troubleshoot effectively is vital in an environment where challenges and opportunities emerge at every turn.

Explore critical problem-solving strategies.

Establishing Governance: Building Trust and Transparency in Risk Management

Ethical Governance Practices

Corporate scandals and increasing demands for ethical behavior highlight the importance of establishing governance. A study by PwC reveals that 55% of consumers are willing to pay extra for products and services from companies committed to positive social and environmental impact. Therefore, this fact underscores the significance of working with stakeholders to ensure accountability, ethical behavior, fairness, and sustainability.

Learn how to build transparent governance.

Key Statistics on Limiting Risk

Statistics indicate that agility-related skills are essential for success:

  • According to the Project Management Institute (PMI), 70% of organizations say agile practices are vital for navigating change.
  • A survey by Harvard Business Review found that 93% of empowered employees are more likely to stay with their organization.
  • Research by the Center for Creative Leadership revealed that 94% of leaders who adapt well to change are more effective.

In today’s rapidly evolving business landscape, organizations and individuals alike must recognize the value of limiting risk. Those who navigate policies, thrive in chaos, lead change, and empower teams are better equipped to excel. Consequently, embracing agility drives innovation, fosters resilience, and paves the way for success in a constantly changing world.

Explore more about achieving excellence.

For more information, you can visit Deloitte’s risk management insights and PwC’s governance and sustainability reports

Are You Part of the IT World?

Perhaps you’re a recent graduate eager to kickstart your career, a new immigrant striving to break into the industry, or an ambitious professional aiming for that long-awaited promotion. Here’s a little secret: In a job market flooded with an average of 200 applicants per position, your technical skills alone won’t cut it.

The Challenge: Standing Out in a Crowded Job Market

With 200 applicants, even if we assume that a modest 10% are qualified for the role, you’re still contending with 20 others who are just as technically proficient as you. So, how does the Hiring Manager choose who gets the nod? They turn their attention to a critical factor: your “Soft Skills.”

Soft Skills encompass the abilities that help you navigate the workplace successfully by interacting effectively with others. These include your capacity to communicate with potential clients, mentor colleagues, lead teams, negotiate contracts, follow instructions, and meet deadlines. After hours of research, article synthesis, and document analysis, we’ve identified the pivotal soft skills that employers are seeking when hiring:

Critical Soft Skills for IT Success

Thrives in Chaos

Anyone in a technology role can tell you that chaos is part of the experience of being in IT. Whether it’s taking on a project you have never done before, a critical operational issue, or a project that may not be going according to plan, there are always new issues that derail plans and change approaches. Staying calm and adapting accordingly is crucial for success in IT. For more insights on managing chaos, read our article on navigating uncertainty.

Evolves With Technology

Being in IT means having a passion for innovation and constantly learning to use new technologies. Whether it’s a new programming language, delivery methodology, process change, or approach, you must step out of your comfort zone and embrace new ways of operating. Evolving your thinking and approach is essential. Check out Harvard Business Review’s article on adapting to technology.

Communicates with Clarity

The ability to successfully communicate complex concepts in information technology in a simplified way is critical to success. When working in IT, there are two main populations that you will support: end-users and technology teams. For end-users, accurately understanding requirements and explaining technical jargon in simple terms helps solve issues faster and with fewer headaches. When working with technology teams, translating business requirements into technical specifications that development teams can implement is key. Learn more about effective communication in IT.

Important Soft Skills That Will Get You Promoted

Reasons Critically and Solves Problems

We have talked about the ability to thrive in chaos, and this capability is an evolution of that. By understanding how to reason critically and tackle problems, you can take an active role in creating solutions and providing critical feedback that helps navigate roadblocks. When things go wrong, building a strategy to guide your organization through challenges will always get you recognized. Discover strategies for critical problem-solving.

Empowers Team Effectiveness

Information Technology is all about teamwork. Even if you never talk to an end-user, you still have to work with other teams. In today’s interconnected technology landscape, multiple stakeholders will support you, and you may need to support them. Better collaboration between teams and individuals results in faster problem-solving, fewer confusions, and on-schedule completions. Empowering your team can be done at any level by motivating, listening, and finding ways to work better together. Working well with others always gets noticed and results in great opportunities. Read about team effectiveness strategies.

Drives Performance and Productivity

Building a plan to get work done and delivering on time and within budget or according to SLAs are key skills needed for promotion. This includes accurately collecting requirements and breaking tasks down logically. To do this successfully, you need industry knowledge and technical know-how to navigate problems and projects effectively. The ability to deliver is crucial for anyone wanting to grow and get promoted. While it’s not the only factor considered, excelling in this area gives you an edge. Explore performance improvement tips.

Now that you know about the critical capabilities in IT, the question is: Do you have them, and are they strong enough to keep you ahead of your competition? To find out, take our OrgInsights Assessment today!