How can you improve partnership risk management over time?

1 Define your risk appetite

Your risk appetite is the level of uncertainty and potential loss that you are willing to accept in pursuit of your partnership objectives. It reflects your strategic priorities, values, and culture, as well as your legal and ethical obligations. To define your risk appetite, you need to consider the benefits and costs of your partnership, the expectations and needs of your stakeholders, and the external and internal factors that influence your decision-making. You also need to communicate your risk appetite clearly and consistently to your partner and align it with theirs.

2 Establish a risk framework

A risk framework is a set of policies, procedures, and tools designed to guide your risk management activities. It can help you identify, analyze, evaluate, and treat the risks that may affect your partnership performance, outcomes, and impact. Such a framework should include a risk register that lists and categorizes potential risks and their likelihood and impact, a risk matrix to visualize the risk level and priority of each risk, a risk treatment plan outlining the actions and responsibilities for mitigating or transferring the risks, as well as a risk monitoring and reporting system to track the progress and effectiveness of the risk treatment plan while providing regular feedback and updates.

3 Involve your partner

Risk management is not a one-sided activity. It requires the active involvement and collaboration of both parties in the partnership. You and your partner should share your risk perspectives, expectations, and concerns, and agree on the risk objectives, criteria, and indicators. You should also consult and inform each other about any changes or issues that may affect the risk profile of your partnership, and work together to resolve them. By involving your partner in risk management, you can build trust, transparency, and accountability, and enhance your mutual understanding and learning.

5 Learn from your experience

Risk management is not only about avoiding or minimizing negative outcomes. It is also about seizing and maximizing positive opportunities. You can learn from your experience by collecting and analyzing data and feedback on your partnership performance, outcomes, and impact, and identifying the factors that contribute to or hinder your success. You can also learn from your partner by exchanging best practices, lessons learned, and recommendations for improvement. By learning from your experience, you can enhance your knowledge and skills, and increase your confidence and competence in risk management.

6 Celebrate your achievements

Risk management is not an easy or pleasant task. It can be challenging, stressful, and frustrating. That is why you need to celebrate your achievements and acknowledge your efforts and contributions. You can celebrate your achievements by recognizing and rewarding the milestones and results of your partnership, and sharing your stories and insights with your stakeholders and peers. You can also celebrate your achievements by expressing your gratitude and appreciation to your partner and celebrating your mutual trust and respect. By celebrating your achievements, you can boost your motivation and morale, and strengthen your relationship and commitment.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?