The risk-based decision framework all CEOs should consider

Claire Bibby, COO of Immediation’s dispute resolution platform.

Regardless of industry, the process of making decisions involves three key stages – defining the problem, examining the options, and implementing the decision. For risk-based decision making, there must be a structured understanding of the risk-reward balance and uncertainties before arriving at a decision.

For CEO and in-house decision-makers, risk management is a critical part of their leadership role – failing to appropriately identify and resolve the potential issues facing the business can result in personal liability. According to Deloitte’s 2018 CEO Board Risk Management Survey, almost 100 percent of responding leaders believed their organisation would face serious threats in the next two to three years, as a result of the constantly evolving business environment where technological change and disruption are moving at a high pace. 

If we look at the first stage of decision making, CEO’s and company leaders need to understand the broader impact technology can have on their organisation before examining the different technologies they can implement to help tackle or mitigate the risks. 

For many businesses, a key area of risk is legal disputes. The risk comes not only from the financial drain, or the time and stress cost to the business but from the damage a legal dispute can do to a company’s reputation — one of an organisation’s most valuable assets. 

Click here to learn more about Immediation’s online dispute resolution.

Litigation, for many, is not a process that is entered into lightly. In today’s digital, ‘always on’ world, a company’s decision to litigate a matter may impact its reputation, as well as the potential loss of trust, sales and subsequently, financial capital. However, the technological revolution brings with it an alternative solution – with the help of digital tools and technology solutions, CEO and in-house decisions makers can now apply a forward-thinking approach to risk management. 

In order to minimise legal risks and the impact of litigation on the business, choosing alternative dispute resolution (ADR) platforms – like Immediation – can provide businesses with an option to resolve disputes quickly and effectively. ADR, and further to that, online dispute resolution (ODR), provides an alternate path to resolution that can mitigate – and potentially avoid – financial and reputational harm. 

ADR and ODR give parties a stage to resolve a dispute confidentially, helping to protect brand reputation. In addition, ODR is a great option for organisations in different physical locations, for whom face-to-face negotiations and meetings may be difficult to organise. 

To remain competitive in our increasingly connected and global economy, decision-makers should be looking for proactive measures that can enable their business to not only navigate technological disruption, but to harness its power to their advantage. For legal disputes, adapting to the technological environment that we live in and making use of the tools that are available, means businesses can continue to meet the ever-growing expectations of customers and stakeholders and free up the leadership team to continue to drive business success, well into the future.