"In today's business climate, outdated process & procedures are the biggest risk for any business owner."
Business Risk Management
Any business in today's environment needs to ensure process and procedure are developed and retained for continuity and risk management.
Below is a brief overview of the risk management process that we go through to develop a strong plan for the future, taking into account a range of factors.
When you are identifying business risk there are three key areas to take into account.
1. Customer 2. Process 3. People
These are the areas that can become pain points in any business and to address business risk, are an effective way to start the conversation around how we can best assist businesses
The risk management process ideally involves:
Identifying risks: Identifying business channel risks by reviewing internal and external factors that impact the business continuity.
Analysing risks: It includes the calibration and, if possible, creation of probability distributions of outcomes for each material risk. This can be done in a simple modelling process that offers an understanding of how it could affect a business over a specific timeline.
Responding to risk: After identifying and analysing the potential risk, appropriate strategy needs to be incorporated. Either by establishing new processes or eliminating, depending on kind and severity of the risk.
Monitoring risk and opportunities: Continually measuring the risks and opportunities of the ever changing business environment. Also keep a check on performance of management strategies.
Risk Assessment Preview: A risk assessment should begin and end with specific business objectives that are anchored in key value drivers. Risk management acts like a guide in any type of company planning. It helps to organise and allocate resources by setting up capital allocation and prioritising business channels that can cause potential issues with continuity.