RISK-ORIENTED APPROACH TO CHANGE MANAGEMENT

Keywords: organizational changes, change management, risk, risk-oriented approach

Abstract

Annotation. In accordance with the set goal, the article substantiates the necessity of usage a risk-oriented approach in organizational changes managing process. The carried-out analysis of the scientific works of domestic and foreign scientists made it possible to determine the meaning of the concepts "organizational changes" and "change management"; to identify the main types of organizational changes and the reasons (risks) of unsuccessful implementation of changes; to define a risk-oriented approach in change management, consider its main features and standard structure for planning and reducing risks within the framework of this approach. The result of the work is the conclusion stating that in order to be sustainable and move towards anti-fragility, organizations need to abandon the traditional approach organizational systems managing. The old way of managing change was to reduce risk by minimizing changes, which to some extent reduced day-to-day risk, but caused accumulation of the existing risk due to unmet business needs. There is a need now to move from traditional risk management views of outdated architectures to a new proactive approach: minimizing of risks by maximizing of changes. This approach requires changes itself and, unlike the traditional approach, makes these changes as strength, not a weakness of the system. The new way requires technology, tools and thinking changes. The article considers ways that can ensure organizational risk resistance (anti-fragility): make changes as often as possible; implement disaster preparedness plans (Game Day Exercises); introduce chaos; build security into the architecture and organization. According to the modern antifragility theory and a risk-based approach, instead of minimizing risk by changes resisting, organizations need to change so often that the system and its subsystems are forced to make things resistant.

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Published
2023-12-20
How to Cite
Nechayeva, I., & Pankova, A. (2023). RISK-ORIENTED APPROACH TO CHANGE MANAGEMENT. Change Management and Innovation, (8), 23-27. https://doi.org/10.32782/CMI/2023-8-4