The Paradox Of Bureaucratic Risk Control
- Topics:
- Enterprise Risk Management
- Tags:
- Finance,
- Financial Planning,
- Financial Services,
- Management,
- Risk Management,
- Security,
- Strategy
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Overview: The more managers consider a situation risk prone, the more they try to control that situation by issuing formal rules and procedures that in fact decrease controllability of the situation. Hence, workers tend to add informal rules in order to maintain control. The research leads to two issues of great importance for the improvement of risk control practices. The first is the relationship between the general business strategy of the firm and the shape—and hence effectiveness—of its risk management practices. The second important issue deals with another relationship: Risk management aimed at the social context of primary production processes has everything to do with managing human resources. However, risk management can only gain from human resources management if the latter is not restricted to the supply side of the internal labor market—recruitment, selection, training and rewarding of workers—but broadened to the demand side, the very design and structuring of work processes.
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Format: PDF | Size: 33KB | Date: Feb 2000 | Pages: 4
