risk management: identifying risk - zimmer biomet and improve/zimmer_innovate... · risk...

Risk Management: Identifying Risk

Zimmer Biomet On-Demand Learning Participant Guide

Living the Zimmer Biomet Value: Innovate and Improve

RISK MANAGEMENT: IDENTIFYING RISK 3

INTRODUCTION

Risk Management: Identifying Risk

Risk is the driving force behind every business venture, so it's important to understand risk and plan for it. Even though the best leaders are accomplished decision-makers who know how to make tough choices on the fly, in today's business environment you must know how to proactively identify risk factors, and how to recognize when business ventures are at risk of becoming critical situations. This course examines the first stage of risk management - identification of risk factors. It also presents several risk identification techniques, including how to use root cause identification, the Delphi technique, and brainstorming sessions to identify risks. Learning Objectives

After completing this topic, you should be able to: differentiate between internal and external risks determine the most appropriate risk identification techniques to use for a given situation recognize guidelines for conducting a brainstorming session to identify project risks recognize actions you can take to overcome various challenges you may encounter when facilitating a

brainstorming session to identify risks conduct a brainstorming session to identify the risks of a project

Who Should Complete Risk Management: Identifying Risk

Decision makers at all levels in an organization interested in learning about the issues relating to risk and risk management. Approximate Duration

1 hour online time 1-2 hours to complete Participant Guide Actions 1 hour post-learning “Putting-It-All-Together” Discussion

4 RISK MANAGEMENT: IDENTIFYING RISK

ZIMMER BIOMET’S APPROACH TO ON-DEMAND LEARNING

Part 1: The On-Demand Course includes all the modules you complete on your computer. You go through the self-paced course online, complete the required work, actions and assessments. Part 2: As you complete the online course, you will work at the same time in this Participant Guide, which includes additional interactive exercises, though-provoking questions, discussions with co-workers and your manager, note-taking opportunities and more. It prompts you to consider situations you’re facing at work and apply what you’ve learned from the on-line course. It helps you remember key points via a useful job aid that you can post at your desk. Part 3: Finally, you will have the opportunity to participate in a Putting-It-All-Together on-line discussion. This creates a learning community, bringing together other Zimmer Biomet employees who have completed the on-line course. Within 10 business days of finishing this course, you will receive an email with instructions on how to participate in the follow-up discussion designed to help you reinforce key concepts and share best practices. On-Demand Courses Reinforce Zimmer Biomet Values

On-Demand courses at Zimmer Biomet support and reinforce the Zimmer Biomet Values. Employees at all levels are expected to demonstrate behaviors and characteristics associated with each: Customers First, Do the Right Thing, Innovate and Improve, Win Through Results, Positive Culture, and One Zimmer Biomet.

Customers First

We actively pursue ways to earn trust and exceed expectations in every Customer interaction.

We listen to understand and anticipate our Customers’ needs We are deliberately responsive and always keep our commitments

We act as if each patient is a member of our own family

Do the Right Thing

We hold ourselves to the highest standard of quality and integrity in everything we do.

We adhere to the highest ethical standards in dealing with others We ensure consistency between our words and actions

We are personally accountable for doing our work right the first time and every time

Innovate and Improve

We are driven to develop innovative solutions that make a difference and to continuously improve performance.

We ask: “How can we do this better?” We empower Team Members to make decisions and solve problems

We embrace prudent business risks and maintain a bias for taking action

Win Through Results

We are accountable for delivering on our commitments and recognize that success requires a winning attitude, discipline and a sense of urgency.

We set and reward high performance standards for our business and our Team Members

We acknowledge reality and focus on finding solutions when faced with obstacles We cultivate a “can do” attitude and own the execution of our plans


Positive Culture

We are optimistic, curious, and committed in our interactions with others.

We listen and respect other points of view

We create a positive environment where people feel appreciated and recognized

We actively seek and give meaningful, appreciative and constructive feedback

One Zimmer Biomet

We collaborate for the greater good in a global company that is united by Our Purpose.

We believe diversity of thought, style and background on our team enables the fulfillment of Our Purpose and Our Mission

We always strive to live Our Values in our interactions with one another

We recognize that Zimmer Biomet is our first team and prioritize the company over individual success

Each year, you are rated on your performance (the work you do toward your goals and objectives) and on the Zimmer Biomet Values (how you do that work). To that end, Zimmer Biomet is committed to providing you training and career development in support of the Zimmer Biomet Values.

Each On-Demand Learning course supports a primary Value, and the actions you will complete in the On-Demand Learning Participant Guide have been designed to support aspects of all the Values. The primary Value supported in this On-Demand course, Risk Management: Identifying Risk is

Innovate and Improve

We are driven to develop innovative solutions that make a difference and to continuously improve performance.

We ask: “How can we do this better?”

We empower Team Members to make decisions and solve problems

We embrace prudent business risks and maintain a bias for taking action

As you complete the work in the Participant Guide, think about all of the Zimmer Biomet Values and how the actions help drive important behaviors.


GETTING STARTED

How the Participant Guide is Organized:

It’s easy to follow along and complete work in the Participant Guide while doing the online modules.

1. Read pages 3-6 of the Participant Guide

2. Respond to the pre-course actions on page 7

3. After you complete these actions you’ll see the “Start!” Icon (Rocket Ship), which will instruct you to go to the online learning and complete certain sections in the course

4. After you complete the online sections as instructed, return to the Participant Guide and complete the next series of actions

5. In the Participant Guide, the types of actions you’ll complete are indicated by the following icons:

Write it Down

Think About

Key Points to Remember

Highlight It

Go Do This

Helpful Tools

What I Will Do Differently

Start!

Top Takeaways

* Some or all of these icons will be used within the Participant Guide.


PRE-COURSE ACTIONS

Write down your thoughts as you prepare to learn about identifying risks.

List the top three things going on now within your business or job that makes this On-Demand Course important to you? What has driven you to take this course?

1. 2. 3.

A risk can be described as the combination and the likelihood and consequences of an event occurring. To lessen these consequences, organizations should have an effective risk management strategy in place. How would you describe Zimmer Biomet’s current risk management strategy? Who might you speak with to learn more about our strategy? Why do you think risk management plays such an important role in many businesses?

While some risks help organizations to grow and develop, many can be a threat to our long-term financial health and sustainability. Identify what you understand our current risks to be at Zimmer Biomet.

1.

2.

Proceed to the online learning. Upon completion of the online sections bulleted below, return to this Guide and complete the segment of actions that follow.

Module I: Course Overview Module II: Risk Identification Techniques


MODULES I & II: COURSE OVERVIEW & RISK IDENTIFICATION TECHNIQUES – ACTIONS

Only those who will risk going too far can possibly find out how far one can go. -T. S. Eliot

Taking risks is critical in almost every business opportunity. As a leader, you must be able to manage the risks to ensure Zimmer Biomet’s success. Risk management consists of a three-step process. First, you identify potential risks to your project. Second, you assess the risk in terms of their probability and severity, and prioritize them accordingly. And third, you deal with the biggest risks to your project by creating an effective plan of action.

There are two types of risks. Internal and External. In your own words, describe each below, and list some examples:

Internal Factors:

Examples:

External Factors:

Examples:

Next, take a moment and highlight which of these factors are within your control. Are there any risks that involve both internal and external factors? Which factors do you experience most often in your work?


During the On-Demand learning, you were introduced to the four common risk categories -financial, strategic, operational, and hazard. Looking back at the previous activity where you listed examples, determine which category each risk falls into by marking it with a(n):

F - for financial S - for strategic O - for operational H - for hazard

Having a clear understanding of risks to Zimmer Biomet, allows you to take action to mitigate their impact or even to avoid them altogether. But to achieve this, you first need to identify these risks by using one or a combination of several risk identification methods.

In the space below, describe a time when you utilized one of these techniques to identify potential risks. Give some additional thought to the following questions…How did you go about it? Was your experience similar or different than what was described in the On-Demand course? What was the impact of the technique? Did you use more than one technique at a time? What lessons did you learn from the techniques you used?


Think about a current project or goal on which you are working. Then, review the On-Demand job aid,Techniques for Identifying Risks, and use the chart below to capture the techniques you believe would be best used to identify your project’s risks. Remember, it is best to use a combination of different techniques, so identify at least two techniques. Project or Goal: ____________________________________________________________

Technique Why do you believe it is the

best technique to use? What are some potential drawbacks

to using this technique?

Brainstorming

Interviewing

Documentation reviews

Root cause identification

Checklist analysis

The Delphi technique

Consider the six techniques listed above. Is there one that you chose not to use because you are not comfortable with its process? How might you become more at ease with this technique? Make a personal commitment to try out at least one new technique in the next 90 days.

Return to the online learning. Upon completion of the online sections bulleted below, return to this Guide and complete the segment of actions that follow.

Module III: Using Brainstorming to Identify Risks Module IV: Practice Using Brainstorming to Identify Risks


MODULES III & IV: USING BRAINSTORMING TO IDENTIFY RISKS & PRACTICE USING BRAINSTORMING TO IDENTIFY RISKS – ACTIONS

One of the most common methods of identifying risks is brainstorming. Remember that brainstorming is an effective method to use when you want to establish an open dialogue and stimulate fresh ideas.

We have all experienced brainstorming. Spontaneous group discussions that produces ideas and ways of solving problems are commonplace in work life today. Why is brainstorming such an effective technique? What does it help to accomplish? What are some of the main benefits to using brainstorming? What are some of its drawbacks?

You learned that brainstorming does have potential shortcomings; still they can be avoided by taking the appropriate steps to prepare. To be successful you must:

1. Define the scope of the session 2. Adapt the session for risk identification

Remember, when defining the scope of the session, you want to look at existing documentation and historical data. List some of the sources of information used at Zimmer Biomet. What information might be found in the project management plan? Is there a project scope statement or something else that might be helpful? What organizational processes might influence your work? Then, you must adapt the session for risk identification. Identify some potential risk categories, which might impact the projects on which you work depending on their type and scope. What categories might be helpful to keep the brainstorming session focused and on task?


Using the project you previously identified, practice using meta-language to help separate risks from the causes and effects to ensure a focus on risk identification in the brainstorming session. Remember, it takes the following form: Because of “cause,” “risk” might occur, which could lead to “effects.”

Project or Goal: ____________________________________________________________

Because of ________________________________________________________________

________________________________________________________________might occur,

which could lead to _________________________________________________________ .

Because of ________________________________________________________________

________________________________________________________________might occur,


Because of ________________________________________________________________

________________________________________________________________might occur,


Think of a time when you used brainstorming to come up with a solution. How effective were you as a facilitator? What worked well and you would employ again? What might you change going forward? How did you feel as you used the technique? What skills in managing group dynamics do you need to further develop?

Before getting started with a brainstorming session, you need to pay attention to potential ground rules to ensure the participants know what should and should not be done during the meeting. Jot down a few of the ground rules you recall from the On-Demand learning and others that you have seen successfully used in the past. Next, take a moment and highlight which of the ground rules you would definitely like to use in a future meeting.


The ground rules may help you to avoid some potential challenges, yet problems will definiely arise as you facilitate the brainstorming session. Give some thought to each challenge and how you will overcome each one while facilitating.

Challenges What will you do to overcome

potential challenges while facilitating?

Dominant participants

Groupthink

Digression

Quiet group members

As a facilitator, you need to ensure that participants at your brainstorming session are focused on risks to your team's or department's project. Take the time now to plan for a future brainstorming session. Complete the following activity to help you prepare for a meeting to identfy risks to your team’s project. Scope of session: Risk metalanguage: Risk categories:


Talk with a trusted peer or mentor about your plan. Ask for feedback on the following questions:

1. What is unclear about the scope of the session? 2. What else must I do to separate risks from the causes and effects? 3. What additional risk categories should I consider? 4. Anything else?

How does identifying risks effectively reflect the Zimmer Biomet value, Innovate and Improve? See the definition/behavioral descriptions on page 5 of this Participant Guide:

Within 10 business days of completing this course, you will receive an email with instructions on how to participate in the follow-up discussion. Please hold onto the work you have completed in this Participant Guide so that you can refer to it then.


TOP TAKEAWAYS: Risk Management: Identifying Risk

Following are the top things to remember from the course, Risk Management: Identifying Risk Risks are inevitable in most business environments. Businesses constantly face threats that come about because of technological changes, market volatility, and regulatory changes. But what exactly is risk? Risk can be described as the combination of the likelihood and severity of an event. Risks are also events with negative consequences that can prevent Zimmer Biomet from achieving our objectives.

Risk Identification Techniques Using Brainstorming to Identify Risks

There are four common risk categories: Financial risks are changes in currency exchange

rates, inflation, or defaults on debt owed to a business. Other financial risks may involve budget cuts, cash flow problems, or limited credit availability.

Strategic risks arise from increased competition, loss of key employees, and industry changes.

Operational risks relate to disruptions and system failures that may be caused by defective products or equipment. They also include supply chain problems and new legislation that requires changes to an organization's processes.

Hazard risks involve accidents in the workplace or injuries caused by a company's products. Damage to machinery or premises caused by bad weather or natural disasters.

There are six common risk identification techniques:

1. Brainstorming, which encourages group members to think creatively about risks

2. Interviewing, which involves question-and-answer sessions with people who have a direct or indirect stake in the project

3. Documentation reviews, which consist of an analysis of documents such as the project management plan

4. Root cause analysis, which you can use to find how and why previous problems happened

5. Checklist analysis, which gathers historical data from previous projects and outlines all identified risks in a single list.

6. The Delphi technique, which involves creating questionnaires to gather information from people with subject matter or project expertise

Brainstorming is an effective way to generate ideas about risks to your team or department's project. But it can easily go off track if the facilitator is not properly prepared.

Steps to conduct a brainstorming session: Step 1: Remind participants of purpose of session and

establish the ground rules. Step 2: Facilitate the brainstorming by remaining within

scope, following the ground rules, and using the appropriate risk metalanguage.

Step 3: Consolidate the responses into a list of risks identified.

Challenges to your brainstorming session:

Strong individuals Group think Digression Quiet group members

This course is part of the Learn and Live the Values program and can be accessed at http://zimmerbiomet.skillport.com

risk management: identifying risk - zimmer biomet and improve/zimmer_innovate... · risk...

Documents