Organizations are becoming more advanced, and given the increasingly digital and interconnected global environment, business risks are occurring with greater frequency and velocity than ever before. In a report by Rapid Ratings, when asked if executives had faced significant supply chain issues or risk events in the last 24 months, 21% said yes and reported a loss of revenue because of the issue.
Risk is the main cause of uncertainty in any organization. The ability to manage risk will help companies act more confidently on future business decisions, and with the knowledge and management of these risk possibilities, businesses are able to assess their problems, and work quickly to stomp them out.
Here are some tips for successful risk management.
Pinpoint your biggest threats
Firstly, you want to take a look at what the company is already doing in the way of risk management. There may already be risk protocols in place, so rather than duplicating efforts and increasing workloads unnecessarily, you can use existing research and information to incorporate into a new, more tangible approach to managing it.
In addition, focusing on every little risk that is not representing a big threat to the organization is wasting company time and effort, so it’s important to identify the major target areas. It is best to pinpoint the biggest threats, and work across the organization to identify the risks that have the highest likelihood to occur and the biggest impact.
Many organizations get stuck in the phase of identifying risks and are never fully able to manage them afterwards. The C-suite must be fully committed to a formal process in place to execute successful risk management. Risk management is not a one-time idea or activity that provides an ultimate fix, instead it is a continual process that is instilled in the organization’s operation based on a framework. As an ongoing process, it must be proactive in staying on top of monitoring and keeping plans up to date.
Effective implementation of risk management requires decentralization of management and use of collaborative efforts throughout the organization. We must use the resources we have and involve the entire organization, making all teams and employees aware of the importance of risk management, define why it is being implemented and outline the expectations.
Adopt a framework
Any organization trying to manage risks effectively should develop or adopt a framework even before making a list of risks. Research a way to help and monitor the process that works for your organization. Risk management can provide an opportunity to bring teams together, or have a restructure and refresh. It can uncover new and exciting roles and opportunities, resulting in a boost in morale and company culture.
StrategyBlocks provides the tools to make sure these things are possible when managing risk, in one place for all to see. StrategyBlocks offers real value through insightful risk assessment that shows how risk directly impacts the success or failure of a company’s strategic initiatives. In addition, the Strategic Health feature allows organizations to successfully monitor and mitigate risks across all business units, in real-time.
You can collaborate across the entire organization, assess the risks effectively and easily, and monitor these initiatives throughout the process, with no installation and no maintenance. Start pinpointing, start collaborating and start implementing, and tighten up on that risk today.