There are a great many risk management tools available, in a variety of forms. Most of us are familiar with failure mode and effects analysis (FMEA) for design risk management, or some other form of risk matrix for project risk planning.

But what do we use for real-time decision making? Our management decisions often cause the greatest risks, but we don’t have fancy tools for them.

Fancy tools just aren’t useful for real-time, immediate-need decisions; there isn’t time to build a matrix and debate criticality vs. severity of consequence. We rely on experience and common sense for real-time judgment and decision making. The unfortunate thing is that even the most experienced of us can lose sight of common sense, especially when we’re under pressure.

Pressure = poor decisions

I’ve recently witnessed several of the organizations I work with suffer from risks that became problems because of poor management decisions. Management took unreasonable or desperate risks, and the gambles didn’t pay off.

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