Thinking outside the triangle: Research-based principles for

engagement

Wes DarouCantley, Quebec

Canada

The trouble with Maslow

There is little research evidence to support the hierarchy of needs

The theory has been taken out of context, misunderstood and misappropriated

It was intended as a tool for the emancipation of human kind

Self-EfficacyAn individual’s confidence in their

agencyi.e. the belief in their effectiveness in

performing specific tasks.Making causal attributions about risk

increases sense of competence and control

Self-Efficacy Theory (Albert Bandura)

Beliefs people hold about their capabilities predicts how they behave better than their actual capabilities

Perceived self-efficacy influences: the level of challenge people set for themselves the amount of effort they mobilize their persistence in the face of difficulties

People can consciously change and develop their sense of self-efficacy

Organizations with a strong sense of collective efficacy exercise empowering and vitalizing influences on their staff

Risk management process

5. Evaluation•Improving the process•Organizational learning•Performance reporting

4. Monitoring•Decision-making•Adjusting•Performance reporting 3. Risk Response

•Determining options•Mitigation options•Implementing

2. Risk Assessment•Impact and likelihood•Risk ranking•Risk tolerance

1. Risk Identification•Environment scanning•Partner collaboration•Selecting key risk areas

UnderstandingContext

•Communications strategy•Gender differences•Stakeholder consultation•Accountabilities

Feedback

1. Risk identification

Opportunity risks: bad news trumps goodBlack swans: high self-efficacy may reduce subtle perceptions of danger Too much certainty about self seeking confirmatory informationInsecurity is your friend!

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Self-efficacy and perception

Human perception is not rationalBias blind-spot: people are more apt to detect bias in others than in themselves

ISO Principles and self-efficacyRM is an integral part of processes Is transparent and inclusive* Is dynamic, iterative and responsive to change* Is tailored to the context*Takes human factors into account*Creates value*Explicitly addresses uncertainty* Is systematic, structured and timely* Is based on the best information*Continual improvement, enhance the

organization* * self-efficacy things we mentioned

2. Risk assessment: Self-efficacy and groups

Group assessment is essentially a feedback exercise

Decision-making is better when participative

High self-efficacy: seek self-verifying information even if it is negative

Low self-efficacy: seek positive information even if it is not self-verifying

Therefore, question positive information

Key Risk Areas

Operational Risks

Financial Risks

DevelopmentRisks

• Op1: Human resources• Op2: Performance mgt• Op3: Information systems

• Dev1: Strategic• Dev2: Socio-political• Dev3: Inst capacity• Dev4: Modality• Dev5: Disasters, env,

disease

Reputation / Public Confidence

• Fin1: Funding• Fin2: Fiduciary• Fin3: Instrument

Self-efficacy and feedbackImportant aspect of determining your

self-efficacyFeedback reduces feelings of uncertainty,

particularly valuable to newcomersAs diagnostic value of feedback

increases, individuals search out more feedback

Seek more feedback when environment is supportive and considerate

Seek less feedback when threat is highCan produce strong affective reactions

3. Risk treatment

People have a central motivation to increase resources to achieve goals

When people perceive their environment as controllable, they will exercise efficacy

Therefore, be incremental: gradually increase resources without threatening self-efficacy

Align goals with central values; will work harder to resolve risk issues (very useful at CIDA)

Build organizational self-efficacyNegative mood is related to creativity

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Due Diligence

Likelihood

Imp

act

4

1 2 3 4

2

3

Capacity Funding

Socio-Political

Modality

Hum Resources

PolicyReputation

Performance Mgt

Instrument

Typical program risk map

Very likelyLikelyUnlikelyVery unlikelyLikelihood

Would prevent achievement of results; close monitoring

Would threaten results; will require review

Could threaten results; may require monitoring

Routine procedures sufficient to deal with consequences

Impact

Very highHighLowVery lowCriteria

Disasters

Fiduciary

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Impact = significantLikelihood = medium

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4. Monitoring: Risk Register

Risk Start Date 2 Trend

Risk response Owner

Operational -Risk 1: HR -Risk 2: Perf Mgt

Very Low StableStable

Restructure respons’iesRBM training in field

DirectorAnalystHigh

Financial -Risk 1: Funding -Risk 2: Fiduciary

Very High DownUp

DGFinanceVery Low

Development -Risk 1: Policy -Risk 2: Socio-pol

Low DirectorField Dir.Very High

Reputation -Risk 1: Rep High Comms

Self-efficacy and risk tolerance

Precautionary principle: In abscence of certainty, the obligation to minimize harm

A perception of self-efficacy in RM gives a sense of more certainty. This allows you to tolerate higher, more realistic levels of risk.

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Risk tolerance table

Risk (I x L) 1 4 8 12 16

Human Resources

X

Performance Mgt

X

Fiduciary XPolicy XSocio-Political XInst. Capacity XDisasters XReputation X

Upside of self-efficacy

Good self-efficacy should improve quality of risk management

This is an important value-added for senior management

Good risk management should increase self-efficacy (and you keep your job)

Downside of self-efficacy

May prevent you from seeing Black Swan risks

Could lead to unrealistic risk tolerance

Can be emotionally chargedRisk owners

Without accountability, observations become less accurate

May attribute negative events to others

Conclusions (I)

Do it in groups better performanceHeterogeneous groupsInclude unhappy peopleCenter on values – principle-based

RM

Conclusions (II)

Make the process incrementalWelcome negative feedbackStay unsure / insecureKeep process intuitive and subjectiveBut get good data

People inherently want to do good risk management

People are capable of changing their self-efficacy

Tenet: Be helpful

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Continuous Learning