Building a business empire through the best products and/or services; growing exponentially or even owning a solid company in the market does not mean that we are exempt from the risks that exist both inside and outside the organization, since risks, in addition to being numerous, are inevitable and all companies are subject to them. Hence the importance of knowing how to carry out adequate risk management.
If we are aware that risks exist, regardless of how strong and successful our company is, we need to pay attention to researching and implementing solutions, as well as adopting a risk management system, because only that way managers and employees will be able to reduce the likelihood of any risk becoming a reality.
What is risk management?
Let us define the concept “risk” as a situation that has not yet manifested itself, but to which we are all nevertheless exposed. In the business context, risks are related to circumstances, conditions or events that are unforeseen in managers’ expectations. Thus, the management of these pernicious possibilities will be the set of coordinated activities that, through good control and management of actions, will always look to avoid the manifestation of risk or, at least, reduce its probabilities.
In that sense, the organizational strategy needs to be shaped by a clear policy of prevention and prescription, to know how to predict each risk, act in advance or, in the worst case, proceed with quick and effective actions when the risk revelation has become a reality.
Thus, to ensure success on this path and to act in time when risks are suspected, the organization needs to have specialized tools (read software) capable of adopting efficient initiatives in the face of changes and fluctuations that the company experiences daily, or that may affect it surprisingly from the outside, causing one or more discomforts.
There are several types of risk to which companies are exposed. Here are some examples:
This risk category is composed of the threats due to failures in internal, external, human and/or systems processes in the organization itself. Operational risks are specific to each sector. To avoid them, we recommend mapping the processes and thus finding the most susceptible points to risk, in order to develop plans for their prevention.
This type of risk is related to those problems directly caused by the strategies implemented by the company. To avoid them, it is advisable to have clearly established goals, as well as a sharp vision and values, since managers and employees operate based on these institutional pillars.
In such cases, it is essential to classify priorities according to the organization’s needs, using tools such as the SWOT analysis, which examines, internally and externally, the strengths, weaknesses, opportunities, and threats, with the aim of reducing damage and mitigating potential hazards.
Malicious people are lurking everywhere, and that reality should always urge us to protect our company’s information through a strong security system, consisting, for example, of antivirus and firewalls, which are very necessary to prevent any intruder from accessing our valuable and/or confidential data.
On the other hand, it is also important to keep each customer’s confidential information and data secure. That is why it is so important to invest in effective cryptography of our websites, as this is the only way to ensure the security and protection of everything that customers and the company talk about.
How to implement risk management in your company?
There are a series of skills, systems, tools, and methods that, ideally, allow us to manage risks daily. Thus, every executive or manager will always be prepared to know what risks the company is subject to. Risk management can be applied in many different activities, such as:
- Monitor tasks and internal controls.
- Maintain leadership through the results provided by the management itself.
- Follow up on the company’s performance on time.
- Share any information with agility and transparency.
- Analyze the results expected by the company.
Benefits of a risk management model
Now that you know the meaning of risk management and how to implement it in your organization, we invite you to learn about its benefits.
Mitigating risks or mapping them is extremely useful for the company and its employees in order to work more efficiently and effectively. Prioritizing the establishment of a safety system allows the workplace environment to be more harmonious, safe, satisfactory, and reliable for employees. Let us not forget that every company has the responsibility to ensure the stability of its human resources and always seek the welfare of each team.
Cost and expense reductions:
Acting in an assertive and intelligent way enables another great benefit in the organization: the reduction of costs and expenses. This is because perfecting results also affects the company’s ability to save money and reduce what it spends.
Applying risk management in your company would generate enormous credibility, since it generates a sense of security and trust, both to those who hire your services or buy your products, as well as to those who work within the organization. The prominent level of management in this sense is always praised and serves as an inspiration to other companies that strive for excellence and professionalism.
Since all areas of a company are relevant, a good risk manager must know how to take them into account during the planning and implementation of his strategies, without neglecting any aspect or need. In this sense, people management, management skills, systematic vision, strategy creation and leadership spirit must always go hand in hand.
Among the services that Actio Software offers you through our catalog, we have a risk management software, discover it here. It will enable you to manage and integrate all risks to which your organization is exposed, providing you with a comprehensive system that will help you avoid surprises and unpleasant situations.
To learn more, request a customized consultation here. As soon as possible, one of our specialists will gladly assist you with the professionalism you deserve.