Managing Risks – A Business Function
When we cross the road we look for oncoming vehicles and only cross when it is safe to do so; this is risk management!
Why is it that when you mention 'risk management' in a business setting many people panic, deny there are any risks, ignore them or accept all risks? This concept is strange because by correctly managing the organisational risks a company is better able to avoid or transfer them, reduce reputational losses, improve productivity in a secure manner and minimise losses and disruptions; these are all things that board members would love to achieve.
One reason could be that organisations see "risk" as a health and safety or insurance matter; whilst both play a part in managing risks they normally do not enabling a broader understanding of the wider risk issues that organisations face. Another could be that they have nobody trained in risk management, (this should not be confused with completing a safety risk assessment to comply with HSE requirements) or anybody who truly understands what risk management is and the processes that should be used to manage them.
By creating a culture of risk management acceptance a message is being sent not only to the workforce but also to shareholders and investors. The impact of correctly introducing risk management practises results in reduced risk events, an ability to proactively transfer risks, reduced reactive costs from dealing with risk events and increased profits. This is what senior management teams want to see and why we believe that managing risks is a business function.
For further information and advice about how to manage organisational risks please email email@example.com, or telephone 0191 3080319 for a free no obligation initial discussion about you organisation's needs.
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