These are Critical Business Issues in my view. Also known by many other names/labels.
What makes them CRITICAL is their significance in terms of RISKS and/or REWARDS.
A CBI might stand in the way of a business breakthrough worth billions!
The risk is not getting that reward. The reward requires overcoming the risks.
CBIs are probably quite complex – far-reaching – so to speak.
Anyway – the only CBIs to go after are those that are the most significant.
No sense going after improvements like painting the hull – when there are leaks in that hull.
First things first.
Risk Avoidance Planning & Contingency Planning for Worthy Efforts
Risk and Rewards – Same Diff. IMO.
Two sides of the same coin – so to speak.
Risks are to be avoided – and Rewards are to be achieved.
So the Risk Avoidance Planning – is really just like Rewards Achievement Planning … you know, how to achieve that reward, what to do, by whom, when, how, and at what projected costs and other metrics.
Only “that” planning takes into account – everything (within reason) – that could go wrong – like anyone familiar with Murphy’s Law and believers of same – to avoid those everythings considered both most likely and serious – as risks.
Not everything under the sun or on the dark side of the moon. You’ve got to draw the line somewhere in terms to your scope. Boil the ocean for a cup of tea? Not unless you have unlimited time and resources for such expansiveness.
Reasonable people who live within various constraints can only go so far, take so much time. Etc.
But – your situation might vary.
Say that your issue involves the success of all of your businesses on the eastern seaboard of the USA.
OK. That’s probably significant.
Now … How likely?
If both – then plan on how to avoid it. Go on offense. Attack it head on. Or play a good defense.
As always – it depends.
And better planning – would also plan for – what you would need to do should you not be able to Achieve that Reward – or Avoid that Risk.
You failed – in the planning scenario – in avoiding the risk – and then you would have to plan out the recovery steps … you know, how to recover from the Risk that was unavoidable or simply not avoided for reasons to be determined in the REVIEW, but now you’ve got to plan for the likely and significant recovery steps in terms of what to do, by whom, when, how, and at what projected costs and other metrics.
And implement what you need to in terms of pre-stockpiling needed resources. The reverse of JIT – Just in Time.
A lot of Just in Case might be what the analysis indicates. Because Contingency Planning told you to do so.
Because a great idea such as JIT indeed has its appropriate places – and indeed has its inappropriate places.
One size seldom fits all.
Risk Avoidance & Contingency Planning and ROI
Again – if you are dealing with significant issues – then rounding your number off at the nearest million or quarter million – would be close enough for both horseshoes – and any ROI projections.
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