Is Your Company Maximizing Its Risk Management Resources?

Organizations, no matter what their activity and size, face a number of risks that may affect the achievement of its objectives. All activities of an organization are permanently subjected to a series of threats, making them highly vulnerable, compromising its stability. Operational accidents, disease, fire or other natural disasters, are an example of this situation, not to mention the threats to its business. Comprehensive risk management has gained momentum in recent years, especially since the nineties, which has led to the emergence of “Risk Management Models”, some of them more specific, such as: COSO, ISO 14000, ISO 22000, OHSAS, etc. and other more global as the AS / NZS 4630 or ISO 31000 standard.

However, many companies are still having issues in the area, facing countless fines and penalties because they are not following simple rules and guidelines. Here are some basic principles for risk management that every business can follow:

For greater efficiency, an organization considering risk management should consider the following principles:

Create value. Contribute to the achieving certain objectives and improve aspects such as health and safety, legal and regulatory compliance, environmental protection, etc.

Ensure risk management is integrated into the processes of an organization. It should not be an isolated activity but rather a part of the principal activities and processes of your organization.

Part of the decision making. Risk management helps decision making informative, allowing you to evaluate the alternatives.

Explicitly with uncertainty. Risk management concerns decision-making aspects which are uncertain, and the nature of that uncertainty and how may be treated.

It is systematic, structured and appropriate. Risk management contributes to the efficiency of a business, and consequently obtains reliable results.

It is based on the best information available. The inputs of the process of risk management are based on information sources such as experience, observation, forecasts and expert opinion.

It is tailor-made. Risk management is aligned with the external and internal context of the organization and its risk profile.

It is important for every business to take on a risk management role. Even though it is best that only one or two people inside the company should head the CCO, or Chief Compliance Officer, role, it is important they get all the help they need. Riliance software limited can provide that help. For more information, contact Riliance today.