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Knowledge Risk
Today, knowledge, innovation, information and relationships impact significantly
on profitability and performance. The BDO Kendalls' Intellectual
Capital Team
assists organisations to develop a systematic and strategic approach to managing
the primary assets of the knowledge economy: people, knowledge processes, and
knowledge products.
Knowledge risk is the risk associated with the under-utilisation or
loss of
knowledge, critical to organisational performance. The loss of knowledge
or its
under-utilization, effects organisations by impairing performance and results.There
are four key factors that contribute to knowledge risk and when two or more
of these factors converge an organisation’s risk is magnified.
Please click
here (PDF
117k) to download an information sheet about BDO Kendalls' Knowledge
Risk
Knowledge Risk Factor |
Description |
Example |
Workforce Profile |
- The cohort effect characterised by the retirement of
baby boomers will concentrate skill loss issues
- Voluntary separations - highly skilled workers are attractive
to many organisations
|
Several highly skilled, long-term employees retire within a short
period. A major project is compromised |
Organisational Downsizing |
- Restructuring or divestment
- Dilution of specialist knowledge
- Reengineering
- Cost-cutting: reductions to training, documentation
and face-to-face meetings
|
Key business processes are not adequately documented. Staff provide
inconsistent advice to stakeholders |
Knowledge Work |
- Knowledge Work is highly specialised and difficult to
document. Replacement staff may be difficult to recruit and new
starters may
have extended time-to-capability
- Significant points-of-knowledge-sensitivity (POKS) where
only a small number of people have the expertise and skills
to do the job
|
A professional taking up a key position cannot understand and apply
the agreements negotiated by their predecessor |
Work Organisation |
- Project teams
- Silos
- Outsourcing
- Use of contractors and consultants
|
Consultants and contractors complete their IT implementation. Poor
follow up decisions are made by the organisation |
Knowledge Risk Management Framework - Ageing Workforce
Phase |
Description |
Outcome |
Identification |
Identify areas within the organisation that by demographic profiling
have an aging workforce in combination with long service and difficult
to replace capabilities |
Clear identification of specific areas within the organisation
that require further assessment of knowledge risk |
Assessment and Analysis |
- Assess specific organisational area knowledge risk by undertaking:
- Profiling
of the team and business function by utilising knowledge mapping
processes. Identification of critical business processes
with critical tacit and explicit knowledge. Points of knowledge
sensitivity are identified
- Assessment of the current dispersion of information
and knowledge related to critical business processes together with
gap identification.
What information is codified and where else does this knowledge/
skill/expertise reside within the organisation or other relevant
parties is ascertained
- Impact analysis of knowledge risk - internal and external
stakeholder impacts
- An overall level of risk is assigned
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Specific business processes with knowledge risk are identified
and a risk rating assigned |
Mitigate Immediate Risks |
Plan, develop and implement mitigation strategies to address priority
and immediate risk areas/business processes |
Immediate knowledge risk is minimised |
Mitigate Ongoing Risks |
Plan, develop and implement mitigation strategies that can be inbuilt
within current organisational processes to mitigate knowledge risk
on an ongoing and sustainable basis |
Ongoing knowledge risk is minimised |
For more information on Knowledge Risk, contact Dr Kate Andrews on +61 7 3237 5839 or email
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