News | 24 Sep 2025

Sun Tzu and the Art of Risk Management

By Peter Erndwein, Director of Risk Control

Although written more than 2,000 years ago, Sun Tzu’s The Art of War is frequently cited by educators for its timeless lessons on effective leadership and strategy. Originally intended to prepare soldiers for ancient battles, many of the principles discussed directly apply to public sector leaders striving to operate top-tier organizations. From municipal utilities and highway departments to police, fire, and parks operations, public entities face a myriad of daily “battlefield threats” requiring the skills of an enlightened general.

“If you know the enemy and know yourself, you need not fear the result of a hundred battles.”

Risk management begins with understanding the complex hazards faced by the organization and the effective options for managing them. For a public works crew, “the enemy” may be distracted or aggressive drivers who interfere with the crew’s pothole repairs. For a police department, it may be the unpredictability of public encounters, frequently with individuals whose ability to reason is compromised. Conducting risk assessments, analyzing past incidents and evaluating industry best control practices help leaders to understand the threats and equip employees and volunteers to overcome them.

“Victorious warriors win first and then go to war.”

The best way to manage risk is to plan for it before it materializes. A utility that trains crews in storm response before hurricane season or a borough that establishes continuity-of-operations plans before a disaster “wins first” by being prepared. Prevention and preparedness reduce the potential for costly losses, liability, and harm to employees, volunteers and the public.

“In the midst of chaos, there is also opportunity.”

Public sector work involves unpredictable, high-pressure situations – water main breaks at midnight, snowstorms, cyberattacks and civil disturbances. Each crisis offers an opportunity to test preparedness plans and assess the effectiveness of personnel involved. After-action reviews help identify what worked well and where improvements are needed. Chaos, when managed properly, can enhance the organization’s ability to withstand or recover from difficulties.

“The supreme art of war is to subdue the enemy without fighting.”

The most effective risk management strategies prevent issues from arising in the first place. For example, designing road projects with built-in pedestrian safety measures reduces the likelihood of future accidents and liability. Investing in cyber protections prevents the need to mount a costly response due to a breach or ransomware event. Proactively eliminating or managing risks before they surface has long been recognized as being far more effective than reacting to serial crises.

“Leadership is a matter of intelligence, trustworthiness, humaneness, courage, and discipline.”

Managing risk requires more than policies and procedures – it requires effective leadership beginning in the front lines. Intelligence comes from gathering and analyzing data to stay ahead of emerging risks. Trustworthiness requires leaders to be honest and deliver on their commitments…always. Humaneness expects leaders to keep the well-being of employees, volunteers and the community central in all decision-making. Courage is acting decisively and with principle even when the outcome is not necessarily popular. Finally, discipline ensures fair and consistent application of cultural norms throughout the organization.

Parting Thoughts

The leadership principles contained in Sun Tzu’s ancient tome remind us that risk management is not about allowing problems to dominate our actions. Instead, leaders in the public sector must anticipate, prepare and act decisively to control their operational environments. Because risks impact both employees and the community, the enlightened leader is best equipped to ensure high productivity and morale in their organization, as well as consistent delivery of critical services to their communities.


Source

Tzu S. The Art of War: Complete Texts and Commentaries. Translated by Cleary T. Boston: Shambhala Publications; 2003.