“Risk awareness is 90 percent of the battle,” says John Varvaris, a former risk-management consultant who is now president of Best Doctors.
Risk is everywhere and it is every employee’s responsibility to identify and mitigate risk. A risk comes in many shapes and sizes, for example: Operation compliance, financial, technological and reputational.
Many constituents, both internal and external, may give rise to potential risks – whether human (employees, customers, suppliers), physical (property, theft, damaged goods), natural (flood, fire, earthquake) or political (war, new policies and regulations) – you must prepare for all eventualities.
¨Risk management is the responsibility of the entire management team. ¨ Puneet Mahajan
Risk should be managed from top to bottom of the organization. To mitigate risk, C-level executives must effectively communicate risk management policies to the entire staff – from the management team to the entry-level employee.
The value lies in the fact that your employees are able to recognize and report any incidents that may have a negative impact on your business. This approach will lead to greater awareness of potential threats and provide your risk management team the ability to initiate proactive measures.
For maximum effectiveness, you should implement an enterprise-wide incident reporting procedures that will promote employee ownership and support of your enterprise security strategy.
An interesting article by Lee Colan, argues that the 5 risks of a growing business area:
Betting Against the Law – Prioritize areas with the greatest legal exposure and the highest resource demand. Consider outsourcing, automating, or at least streamlining activities associated with these areas.
Here is an excerpt of Lee Colan’ article on the subject
Underdeveloped Operational Infrastructure – Creating the appropriate level of operational infrastructure will enable you to work on your business rather than in your business.
Declining Product and Service Quality – shift your business model and employees’ focus to profitable growth. Refocus on your customers’ needs and related processes to meet those needs.
Inability to Capture Key Data when companies do not manage this risk factor, they rely on what we call “Gut Feel Management”–a scary scenario when it comes to financial projections.
Due Diligence – Create a due diligence process (it can be boiled down to checklists) and team, then stick to them.
Regardless of its source, each of each risk situations requires a specific response strategy. All significant consequences on your business continuity should be considered and investigated to help ensure that you may eliminate or mitigate the risk.
When considering implementing a risk management strategy, many business executives are looking at us to reduce risk and deliver:
- An incident management and customer service strategy that will mitigate risk and convert them into opportunities.
- Implement best practices to create a safer environment for your customers and for your employees.
- Take coordinate action to quickly and efficiently manage potential risks
Proactive Risk Management (PARM 8020) has proven its ability to proactively and quickly manage to incidents through its command center, special representative and field operations team. You can count on our expertise and on our 7/24 availability to respond immediately to any new situation to protect your financial and reputational assets.