26 Aug Risk management
What is risk management?
Risk management is a process that aims to prepare business for potential negative events that may hurt, or destroy altogether a company’s profits, reputation, human resources, customers, stakeholder interests or assets. Depending on company goals, risk management can also assess positive future events.
The whole process through which this can be achieved is comprised of three major steps:
- The identification of potential noteworthy events
- The evaluation of diagnosed risks
- Prioritizing risks based on the evaluation, reporting them and proposing strategies in order to deal with them in the most efficient manner
What are the main responsibilities of people conducting risk management?
Provided below is a short list of the core responsibilities that a risk manager/reporter holds. Obviously job descriptions vary from company to company but the ones below are almost a given, since they shape the core of risk management responsibilities:
- Planning the process through which risks will be identified and assessed
- Identification, assessment and report-planning for risks affecting a business
- Quantifying the level of risk that is acceptable for a company
- Evaluation and forecasting of realistic damage (or benefit) that a risk can carry
- Risk reporting (explained in more detail below)
- Governance on risk reporting to stakeholders
- Auditing and internal checks for compliance with various risk-related standards
- Management and training of recently employed personnel
What is risk reporting?
Risk reporting is a vital step in the whole process of risk management. It is a necessity in order to achieve stability (not limited to financial) in a company. In short, it is the act of presenting well analyzed data and recommendations in a concise format, so that the presented person can grasp the essence and perform their duties and take decisions with accurate information in mind.
Risk reporting should be done in an appropriate way, depending on the position of the person you are presenting to.
For example the CEO or the board of directors might require only the most severe risks – due to time limitations, or inability to get involved in minor tasks. Most employees would only be interested in risk reports about their own lines of work – you don’t show technical risks to sales managers for example.
What is a good risk report comprised of?
A good risk report is done by thinking beyond the annual reporting cycle – many detrimental decisions should be taken well in advance. It will put a focus on the most principal risks, keeping them visible throughout so that they aren’t ignored. Simply mentioning something might mean that a person responsible for risk reporting might not be responsible for a company’s proper reaction to it. But a top-tier professional should go out of their way to help executive staff create the best decisions and not just do the least required amount of work. Current concerns should also be well highlighted. While with all the time spent on preparing, analyzing and evaluating future risks, many people forget to look at present problems.
How can M Mobile Solutions help my business?
M Mobile Solutions excels in designing, building, testing and maintaining risk reports. Our specialists possess all of the necessary qualities mentioned above, that separate them from the crowd. We will help your business in making only acceptable risk decisions that are maximized in efficiency.
Mondy Holten, SAP BI Consultant
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