Anyone who's ever watched Formula 1 racing knows that it's just as much about what happens off the track as on it. With data-driven insights and clear goal setting, drivers are able to push the boundaries in a safe and sustainable way. So, how can you apply these learnings to your business? Associate Director, REENESH BHANA, offers his take on it.
It’s easy for us to be astounded at the skills and impressive machinery in Formula 1 racing. But have we considered the key role risk management plays in this spectacle of speed?
Although it may not be obvious at first glance, Formula 1 has risk management weaved into every aspect of it.
Through its strong focus on quality, safety and data-driven decision making, it is able to innovate on an ongoing basis and safely push the boundaries. Risk management in Formula 1 is focussed on testing the driver and vehicle’s limits through constant monitoring, learning and adapting to ensure both safely cross the finish line before the competition.
Here are some learnings from Formula 1 for your own business, no matter what size it is.
Decisions should be based on data driven insights and real time information. Making decisions based on gut feel and emotions alone are shown to be a sure way to lose pole position in your industry or market.
Set clear objectives and goals and map out scenarios in advance of how you will best achieve these, while safely navigating the issues that could hinder you. This clear view of where you are heading and what your appetite is when it comes to risk (when you know the potential outcome), allows you to seize opportunities when they present themselves.
Good risk management should be part of the way you do business. We provide some practical steps below on how to embed risk management disciplines into your major projects, strategic planning processes, and decision making.
· Anticipate what might happen – plan in advance
· Consider the possibilities
· Do we think there is a problem? Can we do this better based on what we know?
· What are the options? Can we improve them?
· Decide which option is best (taking into account the information available)
· Review the outcomes, monitor progress and learn from this to improve future processes
For more information on risk management, contact Reenesh here.
Risk Health Check