Introduction

With a strong emphasis on tools, techniques and methodologies to quantify risk, risk management methods have long approached risk from a purely technical perspective. While managing risk in this way undoubtedly provides advantages over previous, passive or reactive approaches, there is a danger that risk management practices can become one-sided. Too strong a focus on quantification, control and auditable measures can mean that managers are not aware enough of issues and problems that are people-related. In reality, issues such as employee motivation and morale, attitudes and aspirations, management style and leadership, and approaches to problem solving and decision making, can have a massive bearing on how effectively risk is managed. Such factors are often ignored because they are less easy to quantify, but, ironically, may be more immediately known about. For example, low morale among staff is often very apparent but is unlikely to be factored into any appraisal of the success or failure of a business project.