IT Leadership

Every new leader inherits a litany of risks. Some are known, while others lurk beneath the surface, dormant for years. In either case, they represent potential landmines for the unassuming leader. If you are a new leader, it is imperative you identify, assess, and mitigate these risks.

As I transitioned into my first leadership role, I vowed to avoid the common pitfalls that many new leaders fall victim to. I sought to mitigate the risks that I could foresee. Yet, I remained especially vigilant in identifying those risks that I did not recognize. You can be sure that my team benefitted from my heightened awareness of risk management. As a result, we were able to mitigate or avoid many risks that could have derailed our efforts.

In this article, I share with you my approach to identifying and mitigating risks associated with your role and team. My goal is to enhance your risk intelligence so that you may avoid the common pitfalls that many new leaders encounter.

The Leader’s Perspective

Know What You Don’t Know

The single most debilitating limitation of many leaders is the lack of self-awareness. They can’t see past their own biases, shortcomings, and lack of knowledge. If you don’t know what you don’t know, you operate from a position of weakness. And your team will sense it.

If you are unsure about something, say so. Your team will appreciate your honesty. Additionally, it invites them to fill in the gaps with their knowledge and expertise. You will appear human instead of a fraud. Which is preferable?

Know Your Risk Profile

Each of us carries a unique risk profile. Our personalities, experiences, and viewpoints affect how we perceive and address risks. Being aware of your risk profile will help you to avoid or mitigate certain risks. It will also guide you in attracting talent that can complement your risk profile.

For example, if you are risk-averse, you might seek employees who are willing to take on risks and initiatives that you are hesitant to take on. This also means that you shouldn’t be afraid to step out of your comfort zone and take on risks that your team members are hesitant to take on. Risk profiles are a two-way street.

The Team’s Perspective

The Peter Principle

The Peter Principle states that employees will rise to their level of incompetence. This phenomenon happens when employees are promoted based on their performance in their current roles. It might sound good in theory, but it can be a significant risk when this principle is applied to leadership positions.

It is imperative to be proactive in identifying and developing future leaders. Promoting your best performers does not necessarily make them the best leaders. Select leaders based on their ability to develop others, communicate effectively, and demonstrate emotional intelligence.

Talent Risk

It is risky to have a single point of failure on your team, where one employee holds all the knowledge, skills, and expertise in an area. This is akin to having all of your eggs in one basket. If something happens to that person, their departure could mean a significant setback for your team.

Spread out the knowledge, skills, and expertise across your team. Invest in cross-training your employees. It pays dividends in reducing risk and improving collaboration and communication between team members.

Team Cohesion

Team cohesion is essential to the success of any team. If there is a lack of trust and respect among the team, it can create a significant risk. Without cohesive teams, you risk undermining collaboration, creativity, and problem-solving. These are the very things your team needs to thrive.

As a leader, it’s your responsibility to build trust among your team. Help them to understand the importance of respect and trust. And, when needed, take steps to rectify the situation before it exacerbates.

Identifying Risks

In order to mitigate risks, you must identify them first. Risk identification is a continuous process. As new risks emerge, you must be willing to adapt.

Learning From Others

Someone has likely been down the path that you are now traveling. Their experience can provide valuable lessons, both good and bad. Be proactive in seeking out advice from those who have previously held your role. They can provide invaluable insights that can save you from making costly mistakes.

Assessing Your Surroundings

Risks are often lurking underground. It is your responsibility to uncover them. As a new leader, you bring with you a fresh perspective. Use it to your advantage. Assess the landscape from a new perspective and you will uncover risks that those before you have overlooked.

Use tools such as SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to assess your team and organization. SWOT analysis helps to identify and organize the most important aspects of your team and organization. It enables you to address each aspect accordingly.

Previous Mistakes

Learn from mistakes made by your predecessor. Identify the risks that resulted in previous failures. Use this information to avoid the same mistakes.

Risk Assessment

Assess the likelihood and impact of risks to prioritize them. Use a scale to rate each risk’s potential impact and likelihood of occurrence. This helps to quantify the risks and justify the efforts to mitigate them accordingly.

Mitigating Risks

Once risks have been identified, it is time to mitigate them. This step includes mitigating existing risks and preventing new ones.

Mitigating Existing Risks

When it comes to existing risks, focus on high-impact, high-likelihood risks first. These are the most prominent threats that can bring your team to a grinding halt. You must deal with them immediately.

If the risks are already manifesting, then it is critical that you respond accordingly. Respond with urgency. Communicate with your team and stakeholders. Update them on the situation and the steps you are taking to mitigate the risk.

Preventing New Risks

The best leader is one who can prevent risks from materializing in the first place. Risk prevention is your best defense. It is easier to prevent a problem than it is to fix one.

As a leader, maintain a proactive posture. Continuously assess the landscape for emerging risks. Be willing to adapt to changes. Help your team to adapt as well. And always be ready for the unexpected.

Learning From Others

Learn from the risks that others have faced. Tap into your network of leaders. Ask them about the risks they have encountered. Learn from their mistakes and their victories. It can save you a lot of time and energy in the long run.

Monitoring

Risk monitoring is a continuous process. New risks will emerge, others will disappear, and some will worsen. You must adapt accordingly. Monitoring your risks will keep you alert and help you to respond in a timely manner.

You Are Not Indestructible

Leaders, especially those who are new, are expected to have all the answers. This is an unrealistic expectation. If you don’t know something, say so. It is better to admit your limitations than to make unnecessary and unfounded assertions. Your team will respect you more for it.

Mitigating Your Risks

You can’t control every risk. Some risks are beyond your ability to mitigate. When this happens, focus your efforts on the risks that you can control. Don’t obsess over the things that you can’t control. Instead, adapt and adjust to them.

As a leader, your most valuable asset is your ability to lead yourself first. It empowers you to lead your team and organization effectively. This includes an understanding of the risks that are inherent in your role and team.

As you lead your team, focus on what matters and prioritize your efforts. Don’t try to fix everything all at once. Otherwise, you risk spreading yourself too thin. Take things one step at a time.

Remember, as a leader, you are always being watched. Your team looks to you to set the tone. If you appear confident, they will be confident. If you appear out of your league, they will lose faith in you.

Leading yourself first means knowing your limitations and the risks associated with your role and team. It means being proactive in identifying and mitigating those risks. It also means knowing what you don’t know and being open to learning from others.

As a new leader, you will encounter many risks. How you respond to those risks will determine your success. Remember to lead yourself first. It will make all the difference in how you lead your team and organization through the challenges and risks that you will face.