1. The document discusses developing a mature risk mindset and introduces the concept of a "Risk Mindset" consisting of six principles: risk is natural, risk is manageable, risk matters, not all risk is bad, my risk is my responsibility, and proactivity is essential. 2. It argues that focusing solely on risk management techniques, tools, and training is not enough and that how one thinks about risk determines how effectively it is managed. 3. Adopting a Risk Mindset requires building new thinking habits, developing emotional intelligence, getting help from others, and progressing from conscious incompetence to unconscious competence regarding risk.

1. Page 1
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 1
DEVELOPING A MATURE
RISK MINDSET
Presented on
1 July 2021
by
Dr David Hillson
HonFAPM, PMI Fellow, CFIRM
The Risk Doctor The Risk Doctor Partnership
david@risk-doctor.com www.risk-doctor.com
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 2
Risk management today
Risk management is
Widely accepted
Consensus on main aspects
Commonly practised
All industries
All project types and sizes
Most countries
So all sorted then?
Everything always goes to plan

2. Page 2
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 3
0%
10%
20%
30%
40%
50%
60%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Succeeded
Failed
Challenged
Standish Group CHAOS data (1994-2015)
20% Failed
50% Challenged
30% Succeeded
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 4
What about risk management?
Risk management is supposed to help!
… THE key driver for project and business success
Because:
Projects and business are risky – must be managed
Emphasis on objectives
Proactive not reactive
Creates space to manage
Ensures consensus and focus
BUT projects and businesses fail REPEATEDLY

3. Page 3
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 5
What’s the problem?
Focus on the Three Ts:
1. Techniques
Yes, we need to know what to do
2. Tools
Yes, techniques need supporting
3. Training
Yes, we need to know how to do it
Are these enough?
No – necessary but not sufficient
What’s missing?
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 6
The Three Ts are not enough
The Fourth T = THINKING
What’s the problem?

4. Page 4
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 7
What’s the problem?
ATTITUDE AFFECTS ACTION
BELIEF SHAPES BEHAVIOUR
CULTURE INFLUENCES CONDUCT
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 8
Risk management manages risk, but…
…how we think about risk determines how we try to manage it
Limited
concept
of risk
Ineffective
management
of risk
 
What’s the problem?

5. Page 5
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 9
What does “risk” make you think?
Common view:
“Risk” means –
Trouble, problems
Headaches, waste of time
Unnecessary worry
Business prevention
Additional cost
Best-practice view:
“Risk” means –
What we need to know
that we don’t know now
Early-warning giving
enough time to respond
Business enabler through
managed risk-taking
Spend-to-save investment
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 10
Introducing the Risk Mindset

6. Page 6
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 11
Introducing the Risk Mindset
RISK IS
NATURAL
RISK IS
MANAGEABLE
NOT ALL
RISK IS BAD
PROACTIVITY
IS ESSENTIAL
MY RISK IS MY
RESPONSIBILITY
RISK
MATTERS
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 12
1. Risk is natural

7. Page 7
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 13
2. Risk is manageable
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 14
3. Risk matters
Risk = Uncertainty
True or False ?
Risk = Uncertainty that matters
(i.e. can affect objectives)
≠

8. Page 8
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 15
4. Not all risk is bad
Risk includes both threats & opportunities
Managing risk means…
…not only preventing potential problems
…but also capturing potential benefits
What kind of impact “matters”?
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 16
5. My risk is my responsibility
Who’s going to manage risk?

9. Page 9
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 17
6. Proactivity is essential
Risk management offers:
Early-warning system
Forward-looking radar
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 18
The Risk Mindset
RISK IS
NATURAL
RISK IS
MANAGEABLE
NOT ALL
RISK IS BAD
PROACTIVITY
IS ESSENTIAL
MY RISK IS MY
RESPONSIBILITY
RISK
MATTERS

10. Page 10
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 19
FINAL THOUGHTS
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 20
ATTITUDE AFFECTS ACTION
BELIEF SHAPES BEHAVIOUR
CULTURE INFLUENCES CONDUCT
Why does this matter?

11. Page 11
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 21
Why does this matter?
Limited
concept
of risk
Ineffective
management
of risk
 
How we think about risk determines how we manage it
Accurate Effective
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 22
Adopting the Risk Mindset
1. Risk is natural. Accept this reality
2. Risk is manageable. Always seek to influence risk
3. Risk matters. Focus relentlessly on objectives
4. Not all risk is bad. Remain alert to both opportunities & threats
5. My risk is my responsibility. Own relevant risks
6. Proactivity is essential. Act now!

12. Page 12
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 23
Adopting the Risk Mindset
Four first steps:
1. Build new thinking habits
 Train your mind, work on one aspect until it becomes natural
2. Develop emotional intelligence
 Be aware of your thinking, check regularly, adjust where necessary
3. Get help
 Find a coach, mentor or trusted friend
4. Be intentional
 From conscious incompetence through conscious competence to unconscious competence
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 24

13. Page 13
Copyright © 2018-21 David Hillson/The Risk Doctor Partnership
DEVELOPING A MATURE RISK MINDSET
Dr David Hillson – The Risk Doctor
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 25
Thank you
Any questions?
© 2018-21 David Hillson/The Risk Doctor Partnership, Slide 26
For further information
Dr David Hillson
The Risk Doctor
+44(0)7717.665222
david@risk-doctor.com
www.risk-doctor.com
YouTube.com/RiskDoctorVideo