Succession Management As A Risk Management Strategy
Succession management is fundamentally an exercise in business risk mitigation. If you develop a pipeline of leaders who can take on critical roles in your business, you will mitigate the potential risk of not being able to deliver on your business goals. When evaluating the degree of succession risk in your business, consider these dimensions.
Vacancy Risk Start by evaluating which roles are most critical to your business strategy. Then consider: What is the risk of having these roles vacant? Will there be a negative impact on customers, profits, revenue, or employees? Next, assess the degree of risk for each role. If a role is considered to have a high vacancy risk, focus your succession efforts here first.