| To be effective, risk management should be an | | | | assessments will also present opportunities at an |
| integral part of everyday business management. A | | | | earlier stage to explore new ways of doing things |
| regular and robust process should identify and | | | | and alternative courses of action should a problem |
| manage acceptable levels of risk before they turn | | | | occur. |
| into disasters. Without a robust procedure for | | | | As part of a risk management process there should |
| identifying and dealing with risk, the information, | | | | be opportunity for constant review to discover ways |
| reputation and finances of a business are all in danger. | | | | to improve business practices and reduce future |
| Establishing a strong process brings benefits from | | | | threats. |
| day one. | | | | 4. An action plan for effectively dealing with |
| 1. Raised awareness of significant risks. | | | | significant risks |
| The biggest danger to a business is failing to | | | | Unfortunately it's all too often the case that a |
| identifying a risk until it's too late. This can be costly | | | | company is unaware of a risk before it becomes a |
| in terms of reputation, security, money and internal | | | | significant threat to their business. |
| morale. Early identification of threats empowers a | | | | An effective risk management process will include an |
| business to categorise and prioritise risks and to deal | | | | action plan. This will include well thought out actions |
| with them in a timely and effective way. | | | | for implementation should risks threaten to become |
| 2. Recognition of responsibility and accountability. | | | | significant. |
| Having identified possible risks, a business can then | | | | Apart from saving a company from valuable business |
| assign the most relevant party (internal staff or | | | | losses, being prepared in this way plays an important |
| external experts as appropriate) to deal with them. A | | | | part in protecting their external reputation should 'fall |
| strong risk management process will ensure that | | | | out' from the risk become public. |
| once assigned, a risk can be tracked to ensure it is | | | | 5. Enhanced corporate communication |
| dealt with on time and effectively. | | | | The need to deal with risks in an effective manner |
| 3. Identification of new opportunities | | | | instills a culture of communication throughout an |
| Identifying and dealing with risks often presents a | | | | organisation. It is rarely the case that a risk is dealt |
| company with new opportunities that would have | | | | with in isolation and will call on interdepartmental |
| otherwise gone undiscovered. For example, where | | | | teams to communicate with each other on a regular |
| problems in remedying threats occurs a company is | | | | basis. It also encourages better communication from |
| presented with the opportunity to review and | | | | management board to stakeholders with the news |
| strengthen internal policy and procedures. Risk | | | | of how risks are being better managed. |