Long-term business success requires an effective financial and operational management. While companies put significant effort in addressing these key issues, they sometimes overlook the necessity to implement an incident management strategy.
The most common asked question is: How to develop an incident management strategy that will mitigate risk and convert them into opportunities?
Risks are not created equal. As a first step forward, you need to assess your tolerance to risk. As Puneet Mahajan from GE puts it ¨what is your risk appetite?¨ ¨A risk-appetite statement for a company [describes] how much it is willing to put at risk, what are the critical few (five or six) risks it really cares about, and what boundaries it wants to put around them.”
The answer to this question will enable you and your management team to assess and prioritize your risk management response. Since all incidents are not created equal, they do not have the same level of impact on your profitability. Your efforts should be concentrated on the vital few incidents that need your immediate attention.
Preparation and adequate response to incidents must be strategically planned and effectively communicated to all employees. Incident management is the responsibility of all stakeholders. Surely, it needs to be managed by a risk/incident management officer, however, employees need to efficiently execute the actions to mitigate risks associated with the incidents to achieve success and maximize shareholder value.