Risk management encompasses the identification, analysis, and response to risk factors that form part of the life of a business.
Effective risk management means attempting to control, as much as possible, future outcomes by acting proactively rather than reactively. Therefore, effective risk management offers the potential to reduce both the possibility of a risk occurring and its potential impact.
Some of the most prominent operational risks facing organizations relate to compliance and include:
- Pandemic related policy and regulation on business performance
- Inability to deal with cyber threats
- Complying with data privacy laws
- Regulatory change and scrutiny on operational resilience, products and services
Of course there also dozens of potential external risks such as economic conditions, leadership succession challenges and ability to attract and retain top talent, adoption of new technologies requiring new skills in short supply, and resistance to cultural changes may restrict the need to make necessary adjustments to the business model and core operations.
There are many strategies for effective risk management. Experts in risk management say it’s extremely important to identify risks early on. Think about risk management at the start of every project or task. What Early Warning Indicators (EWIs) can we track for different risks? Risk management should be embedded into all of your work processes and corporate culture.
Additionally, organizations need to be clear about remit. Any gaps in responsibilities across your business present an increased opportunity for risk. Ensure that everyone knows exactly what part of the business and what activities and tasks they are responsible for.
Want to learn more about risk management? Tonex offers Risk Management Training, a 2-day course that covers framework, methods, and practice risk management across industries through real case studies.
Additionally, Tonex offers over five dozen other courses in Business Skills. Training covers everything from business writing and briefing skills to SOW Writing and Risk Management. Here are just a few of our courses in Business Skills:
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