Leveraging risk work to improve risk-based decision-making in a Namibian electricity utility

Abstract

This study aimed to explore how risk work could be improved to enhance the inclusion of risk in decision-making in a Namibian electricity utility. The study followed a survey-based, mixedmethods study design that combined elements of both quantitative and qualitative research. Data was collected from a total of 53 participants - 26 managers and 27 non-managers - with a survey response rate of 20%. The study found that both groups identified risk leadership as the risk area that needed the most attention to improve the inclusion of risk in the decisionmaking of the organisation. Managers were keen to change the risk communication and risk management framework, while non-managers mainly wanted to change risk accountability and risk understanding. In their qualitative, explanatory responses, decision-makers identified challenges to incorporating risk in decision-making, including not being held accountable for not including risk in decisions, blurred risk accountability lines, a lack of risk understanding, inadequate buy-in and commitment from the top leadership of the organisation, inadequate risk management guidance, a silo approach to risk management, and risk-culture-related challenges. The board of directors, senior leadership, and risk management practitioners of the Namibian electricity utility can benefit from the results of this study, as it highlighted the risk work areas that needed to be improved and the related challenges decision-makers faced to more effectively consider risk when making decisions. This will allow the organisation to enhance its risk-based decisions by designing specific actions to address the priority risk areas identified in this study. This study addressed the lack of literature on risk work in the Namibian context and the Namibian electricity sector, in particular. The study has, therefore, also contributed novel insights into the global body of risk management knowledge.