Author : Jaime Menor Jr.
Disclaimer:
The information on Tacit Risk Blog is meant merely as a general reference and is not meant to take the place of expert counsel or services. Even though we try to provide insightful information on risk management, every case is different and sometimes calls for the knowledge of a trained specialist.
You understand that using this website entails using the information at your own risk. To address your unique risk concerns, we strongly advise you to speak with a specialist. This website's writers and creators disclaim all responsibility for any choices or actions made in response to the information on the site.
Introduction
Effective risk management is crucial in the realm of government, where decision-making impacts a nation's citizens and institutions. While the term "tacit risk" might not be commonly used, its presence is palpable in government settings, stemming from unarticulated knowledge, organizational cultures, and external factors. This article explores the application of strategies to manage tacit risks within the unique landscape of the Philippine government.
Unarticulated Knowledge and Experience
In government settings, tacit knowledge often resides in experienced individuals whose insights are gained through years of service. To address this, fostering a culture of open communication and risk awareness is paramount. Encouraging employees to share their intuitive knowledge through storytelling, mentoring, and communities of practice can unlock valuable insights that might otherwise remain unspoken.
Organizational Culture and Practices:
Risk-averse cultures and a lack of transparency can impede risk identification and assessment. Government agencies must proactively break down these barriers. Establishing formal risk management processes is essential, but equal emphasis should be placed on informal discussions and brainstorming sessions. Regularly challenging assumptions and biases ensures a more comprehensive understanding of potential risks within the organization.
External Factors:
The Philippine government, like any other, is vulnerable to emerging threats and the complexities of interconnected systems. Staying informed about trends and conducting regular risk assessments involving a diverse range of stakeholders is crucial. This ensures a proactive approach to addressing risks posed by new technologies, market trends, or regulatory changes.
Strategies for Managing Tacit Risks in the Philippine Government:
Cultural Transformation: Foster a culture of open communication, where employees feel empowered to share their insights without fear of retribution.
Knowledge Capture: Utilize techniques such as storytelling, mentoring programs, and communities of practice to capture and transfer tacit knowledge within the organization.
Integration of Formal and Informal Processes: Implement formal risk management processes, but supplement them with informal discussions and brainstorming sessions to uncover hidden risks.
Continuous Learning: Challenge assumptions and biases regularly through training and awareness programs, ensuring a dynamic approach to risk identification and assessment.
Stakeholder Involvement: Conduct regular risk assessments involving a diverse range of stakeholders, including citizens, to capture a comprehensive understanding of potential risks.
Resilience Building: Integrate resilience and adaptability into organizational systems and processes to respond effectively to unforeseen challenges.
Conclusion:
In the complex landscape of the Philippine government, addressing tacit risks is essential for fostering resilient governance. By implementing strategies that promote open communication, capture hidden knowledge, and engage a diverse range of stakeholders, government agencies can proactively mitigate potential threats. Acknowledging and addressing tacit risks is not just a risk management imperative but a foundational step toward building a government that is informed, adaptive, and resilient in the face of uncertainties.
References: resources that support the article above
The Risk Factor by Mark J. Polansky (Harvard Business Review): Discusses the challenges of managing "emergent risks" that are difficult to predict or quantify. (https://hbr.org/2012/06/managing-risks-a-new-framework)
Managing the Human Side of Risk by Charles F. Manz and Kenneth I. Mitroff: Emphasizes the role of intuition, judgment, and human factors in risk assessment and decision-making. (https://www.directtextbook.com/isbn/9780073527369)
Unarticulated Knowledge and Experience:
Tacit Knowledge and Knowledge Management by Ikujiro Nonaka and Hirotaka Takeuchi: Explores the concept of tacit knowledge and its importance in organizational learning and innovation. (https://sis.binus.ac.id/2018/02/05/introduction-to-the-nonaka-and-takeuchi-knowledge-management-model/
Storytelling in Organizations by David K. Kolb: Discusses the use of storytelling as a tool for knowledge sharing and organizational learning. (https://m.youtube.com/watch?v=iUj_27aVuqw
Organizational Culture and Practices:
Building Risk Resilient Organizations by Jeanne Brett and James C. Honeycutt: Emphasizes the importance of organizational culture and risk awareness in managing complex and uncertain environments. (https://www.amazon.com/Designing-Organizations-Create-Value-Structure/dp/0071393927)
The Dark Side of Risk Management by Philippe De Bruyn: Explores the limitations of traditional risk management and argues for the importance of considering "unknown unknowns" and implicit risks. (https://www.amazon.in/dark-side-risk-management-decisions/dp/0273663461)
External Factors:
Global Assessment Report on Disaster Risk Reduction (GAR) by the United Nations Office for Disaster Risk Reduction (UNISDR): Provides a comprehensive assessment of disaster risks and trends around the world. (https://www.undrr.org/publication/global-assessment-report-disaster-risk-reduction-2015)
World Economic Forum Global Risks Report: Identifies and analyzes the most pressing global risks facing the world. (https://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf)
Strategies for Managing Tacit Risks in the Philippine Government:
The Philippine Development Plan 2017-2022: Outlines the government's goals and strategies for achieving inclusive and sustainable development. (https://pdp.neda.gov.ph/)
Good Governance Scorecard of the Philippines by the World Bank: Assesses the Philippines' performance on various governance indicators, including transparency and accountability. (https://www.worldbank.org/en/news/feature/2021/07/28/through-thick-and-thin-philippines-world-bank-partnership-since-1945)
