Do you know what risk mapping is and how it can benefit your company? It is a process of identifying vulnerabilities and possible risks that the organization may have in financial, legal, operational, environmental, image operations, among others.
Furthermore, it is an important tool to help the company understand which are the threats that most need attention, in order to be able to act in advance and avoid possible consequences that will impact the company, whether internally or externally.
But for risk mapping to be truly effective, management needs to involve the entire organization in the preparation and engage in a collective effort to carry out the diagnoses.
The main risks for a company
Through risk mapping and software that helps in this management process, it is possible to identify, analyze, evaluate and build an action plan. These are essential steps and are part of good risk management.
There are three main types of risks to which an organization is exposed:
- Operational risk concerns process problems, human and system failures, which can impair the achievement of goals and the workflow, bringing direct problems to the delivery of results. Among the risks are delays in deliveries, failures in the operation, technological failures, fraud, lack of security, among others;
- Image risk, on the other hand, has to do with situations that compromise the company’s reputation before the market, partners, customers, investors and society in general. Therefore, it is essential that the mapping of this risk is monitored, as reputation is one of the most precious assets of a business. An image without credibility can cause loss of customers, profit and demotivation of employees;
- Finally, another important risk is the legislation. The company must be in line with the legislation and obligations that govern its operation in order not to have contractual problems that will impact its operation. Among the main points are the risk of fraud, labor problems and regulatory risks.
The importance of risk mapping and its advantages
Not only in the corporate world, but in all areas of our lives, we want to control risks as much as possible, to reduce consequences, misunderstandings and stress. Even so, they cannot be eliminated completely.
The same occurs with companies, the mapping allows an expanded view of the problems that may occur within the institution.
In addition, the risk map can predict actions to smooth or even avoid failures, saving time, resources and wear.
We cannot forget that risk mapping is the first step of several others that must be put into practice, so that the positive effects of this process take place.
Important steps to map risks:
The fact is that risks cannot be eliminated completely. Therefore, the most important thing is to prepare yourself to deal with them. So, here are some tips on how to develop your risk mapping:
1- The first step is to understand your context — social, political, economic, internal and external;
2- Then identify potential risks. At this stage, it is worth bringing managers and leaders together so that each one can contribute with their vision;
3- Then carry out an analysis of the causes, consequences, probabilities and impacts;
4- Organize and assess which are the most critical risks, creating a scale that helps for a clearer view. This point is crucial for assertive decision-making;
5- Create the action plan for each risk;
6- Constantly monitor the activities of the action plan;
7- Carry out the process again on a recurring basis in order to apply improvements;
8- Finally, use technology to your advantage. Risk management software will be your greatest ally in this process.
Want to know more about Belt and how Action can help you? Contact us.