Essentials of Knowledge Management

8.4. Risk Management

For most senior managers, managing risk is a continuous process that involves rethinking strategies and employing tactics to maximize likelihood of success. One of the primary tactics for managing the risks associated with a KM implementation is learning to predict where threats can arise and to recognize threats as soon as possible. As described here, the key areas of risk associated with a KM initiative relate to:

• Management

• Politics

• Finance

• Law

• Technology

• Marketing

8.4.1. Management

The implementation activities associated with risk range from selecting an appropriate implementation strategy, establishing a workable reward system, and filling resource requirements, to dealing with excessive market volatility, maintaining focus, exercising the appropriate leadership, and selecting the appropriate vendors. For example, in selecting the best implementation strategy, management must decide whether to attempt a corporate-wide implementation from the start or to experiment with a limited pilot program.

The advantage of a pilot program is that there is limited risk in the event that the project fails, less financial exposure, and less disruption of the corporate culture. There's also the advantage of being able to select the department or division most likely to be receptive to the change. Doing this maximizes the odds of success because the successful experience serves as an illustration to others in the company of the advantages of embracing Knowledge Management. ...