Risks are constantly knocking on the door. Not only as a threat to specific projects and sub-areas but can also mean that a company must turn the key or a board of directors must resign. Therefore, it is not surprising that risk management has become an important focal point for companies and organizations of all sizes, private and public.
We have gathered six of the most important elements of risk management. Did you know, for example, that a risk can have a positive outcome? And that your risk management should be considered throughout the organization - and that larger organizations should have a greater focus on risks?
Risks do not have to be a threat. In risk management, a risk can technically potentially have a positive impact. Risk is thus not necessarily something to be avoided. - It can be a strategically legitimate choice to take a risk despite potentially negative consequences, if the probability of a positive outcome is sufficiently high - and that the expected gain is sufficiently attractive. For example, there are risks associated with moving into new markets, but this may be a necessity or sufficiently rewarding.
Risk management is a critical area, and it is crucial that management is involved in its design and implementation. Both for overall, strategic reasons but also to signal to the rest of the organization that risk management must be taken seriously.
It is important that everyone in an organization understands what risk management is and why it is so important. They must also understand that it is everyone's responsibility to be aware of potential risks.
The team responsible for the specific risk management should have the necessary authority so that they can enforce plans when required.
The individual risk does not only come from outside. You need to make sure that you can handle the internal risk as well. Examples could be poor working environment, dropout of key people, system crashes, abuse of power, and much more.
When assessing risk and finding potential threats, it is also important to look for data and case studies from external sources. These can give you invaluable insight. But also make sure to collect data about what you know the most about - namely events with a direct impact on you. Such as the extent of work injuries, system crashes, and other things that can be easily gathered in a log. For example in our RMG C3, where we have modules for e.g. insurance claim registrations, general incident registration with associated visualization tools.
There are many reasons for this connection, not least because the larger your organization, the more an attractive target the organization is for outsiders. Plus, with a larger company, managing each department to the same extent can be more challenging.
Some risks are critical, such as those that can destroy an organization, and others are relatively minor. It is important to examine and categorize them accordingly so that each individual risk can be given the required attention.
We recommend that you as an organization get used to registering both minor and major incidents, then the procedures are in place to handle the "real" crises. And that you thereby also get data to be able to increase your knowledge and thus improve your decision basis.
When setting goals for the future, risk management must be closely linked to these. Without this element, it can mean that you lose focus when risks arise, and thus you can not reach your goal.
Any organization with a successful risk management plan will minimize relevant, critical risks and at the same time - with its eyes open - take the right risks.
RMG C3 Violations is a module for recording violations, acts of violence or internal incidents.
Makes it possible - at the same time - to monitor and work on multiple levels of information in a given situation.
Quick, easy, and simple way to manage insurance claims and/or work injuries.