Risk! Risk is Our Business!!!

Embracing the Uncertain: Enterprise Risk Management Through the Lens of Star Trek

In the vast expanse of space, the Starship Enterprise embarks on its mission to explore strange new worlds, seek out new life and civilizations, and boldly go where no one has gone before. This iconic journey from the legendary series Star Trek. In Season 2, Episode 20 of the original series, Captain James T. Kirk, a leader who faced the uncertain with courage and determination, stated:

“Risk! Risk is our business. That’s what this starship is all about. That’s why we’re aboard her.”

This quote, though set in the backdrop of space exploration, resonates profoundly with the challenges and opportunities in the field of Enterprise Risk Management (ERM) and Governance, Risk, and Compliance (GRC). Let’s delve into how this interstellar perspective can illuminate our approach to risk in the business world.

Background . . .

“Star Trek: The Original Series” Season 2, Episode 20, titled “Return to Tomorrow,” is a significant episode in the Star Trek canon, particularly for its exploration of risk and leadership through the character of Captain James T. Kirk.

In “Return to Tomorrow,” the Starship Enterprise is contacted by a powerful, disembodied alien entity named Sargon. Sargon and his companions are survivors of a highly advanced, extinct civilization. They have been living as consciousnesses without physical bodies for half a million years and invite the crew of the Enterprise to their planet. Upon arrival, Sargon explains his ambitious plan: to temporarily inhabit the bodies of Captain Kirk, Science Officer Spock, and Dr. Ann Mulhall, so they can construct android bodies to permanently transfer their consciousnesses. This offers the potential for immense scientific advancement but comes with significant risks, as the process could potentially harm or kill the host bodies.

Captain Kirk’s famous quote, “Risk: Risk is our business. That’s what this starship is all about. That’s why we’re aboard her,” is made during a pivotal scene where the crew debates whether to assist Sargon and his companions. The decision is fraught with ethical and physical dangers. The risk here is a physical threat and a moral dilemma, as the crew must weigh the potential benefits of helping a dying civilization against the possible costs.

Kirk’s statement encapsulates his leadership philosophy and the broader mission of the Enterprise. He acknowledges that their journey is not just about exploration but also about taking risks to achieve greater understanding and to help others, even when the outcomes are uncertain. This perspective on risk is not reckless but is a calculated acceptance of the unknown as part of the pursuit of progress and knowledge.

In essence, this episode and Kirk’s statement highlight a core theme of Star Trek: the pursuit of knowledge and exploration inherently involves risk, but it is through taking these risks that humanity grows and learns. This theme resonates with the challenges and decisions faced in business and organizational contexts, especially in areas like enterprise risk management and governance. It reminds me of Judge Mervyn King of South Africa, the impetus for the King 1, 2, 3, & 4 reports on Corporate Governance, who stated: “Business is the undertaking of risk for reward.”

The Enterprise as a Metaphor for the Organization

Picture the Starship Enterprise: a vessel designed for exploration, encountering new worlds and civilizations. In the corporate world, an organization is akin to this starship, venturing into the market’s uncharted territories. Just as the Enterprise faces cosmic anomalies and unfamiliar species, companies encounter market volatility, technological disruptions, and competitive landscapes. Understanding this parallel helps us appreciate the necessity of being well-equipped to manage the unknown.

Just as the USS Enterprise traverses the unknowns of the galaxy, modern organizations navigate through the uncharted territories of the global market. The Enterprise, equipped for unexpected challenges, represents an organization’s need to be prepared for various risks – be they financial, operational, strategic, or compliance-related. Like a starship crew, a company must work in harmony, utilizing every member’s strengths to achieve its objectives while safeguarding itself against potential threats.

Understanding Risk in the Business Context

Risk, in business, is often viewed with apprehension. However, just as the Enterprise’s mission is not to avoid space but to explore it, the mission of a business is not to avoid risk but to engage with it strategically. Risk is a dual-edged sword; it presents potential dangers and opportunities. Effective risk management strategies help organizations identify, assess, and manage these risks, turning potential threats into opportunities for growth and innovation.

In the business world, risk is too often viewed through a lens of avoidance and mitigation. However, Captain Kirk’s view of risk as an integral part of the Enterprise’s mission suggests a different perspective. Risk is not just about avoiding harm; it’s about embracing the possibility of opportunity and reward. We take risks to achieve business objectives. The business not taking risks is the business this is out of business. Effective risk management involves identifying, assessing, and managing risk to maximize the organization’s value, just as Kirk evaluates potential dangers and opportunities on his voyages.

Here are some things we can learn in this analogy of Star Tek to the world of risk management in business . . .

• Risk Management: The Crew’s Responsibilities. On the Starship Enterprise, every crew member, from the Captain to the engineers, plays a crucial role. The diverse crew of the Enterprise, from Mr. Spock’s logic to Dr. McCoy’s compassion, highlights the varied roles within an organization. Similarly, in an organization, effective GRC requires the coordination of various roles – from the board of directors and executives to individual employees. Each department, whether finance, operations, human resources, or IT, is critical in managing risk. Each member contributes to the organization’s risk management. Effective GRC ensures that these roles are not siloed but work in concert, much like the coordinated efforts of the Enterprise’s crew.
• Risk Management: Navigating Uncharted Territories. Navigating a starship requires constant vigilance, adaptability, and a deep understanding of the environment. It requires understanding the star charts, the ship’s capabilities, and the potential dangers of space. In business, navigating through market and operational uncertainties requires a similar approach. Risk assessment tools and strategies are maps and sensors that help businesses understand their environment, assess potential risks, and develop strategies to mitigate them. Businesses must employ risk assessment tools and strategies to navigate uncertainties. This could involve scenario planning, risk frameworks, and continuous monitoring akin to the Enterprise’s sensors and navigational systems.
• The Need for Bold Risk Leadership: The Role of Captain Kirk. Captain Kirk’s leadership is pivotal in the Star Trek narrative. It is a bold, decisive, yet informed leadership style that is emblematic of what is required in business leaders. In business, leadership plays a similar role in risk management. Leaders must make critical decisions, often with incomplete information while inspiring their teams to embrace the organization’s vision. The courage to take calculated risks is at the heart of innovative leadership, balancing boldness with a sense of responsibility.
• Case Studies: Successful Risk-Taking Enterprises. Let’s look at real-world examples. Companies like Apple and Tesla have navigated significant risks in pursuing innovation, much like the Enterprise explored unknown galaxies. These cases demonstrate the importance of vision, innovation, and risk management in achieving business success. Apple revolutionized the music, phone, and tablet industries by taking significant risks. Now we watch SpaceX, which dares to re-imagine space travel. Like the Enterprise, these companies venture into uncharted territory to reap substantial rewards. They demonstrate that well-managed risk can lead to groundbreaking innovation.
• Balancing Risk and Reward: The Ongoing Mission. The Enterprise’s mission in Star Trek is ongoing, constantly adapting to new challenges and opportunities. Just as the journey of the Enterprise is ongoing, so is the risk management process. It’s about finding the right balance between taking risks and managing them prudently. This balance is crucial for sustainable growth and long-term success. Risk management is a dynamic process that has to adapt to changing objectives and uncertainties to achieve those objectives. It requires organizations to balance taking risks to achieve growth and exercising caution to ensure sustainability.

Embracing Risk as Part of the Business Voyage

In conclusion, Captain Kirk’s perspective on risk offers a valuable lens through which to view the challenges and opportunities in risk management and GRC. Organizations, much like starships, are on a voyage through the uncertain. ISO 31000 devices risk as the uncertainty in achieving objectives. OCEG defines GRC as a capability to reliably achieve objectives [governance], address uncertainty [risk management], and act with integrity [compliance]. Embracing and managing risk is not just a necessity; it’s a fundamental aspect of the journey toward achieving extraordinary objectives.

As Captain Kirk suggests, embracing risk is essential for organizations aiming to thrive in today’s competitive landscape. By understanding, managing, and strategically taking risks, businesses can boldly go where they have never gone before, turning potential threats into opportunities for success.