Better Risk Management –- Using Risk Surveys to Identify, Assess and Mitigate Business Risks
Category: Risk Management | Jan 05, 2010 |
Business Risk Assessment Surveys Strengthen Your Risk Management Process
Running a company is a risky proposition. Too much risk can be very costly, particularly when things go wrong. Too little risk can also be very costly, especially when smart risks are being avoided or too much money is being spent to limit risks.
Significant risks are often hidden or ignored by organizations. The best way to identify and assess these hidden and ignored risks is to survey managers and staff professionals at all levels of the organization. Business Risk Assessment Surveys collect risk information and insight from managers and other key employees and consolidate it by business unit and your organization overall.
Companies need a clearer understanding of the risks they are taking to protect the physical, financial, human and intellectual assets of their companies. The main goal is not to eliminate uncertainty. Instead, it is to be proactive in assessing and managing risk for your company’s advantage.
Risk assessment surveys are a critical tool for any successful risk management process. It is all about identifying, assessing and managing a wide range of risks at acceptable levels.
What risks does your organization face? How do you know?
Who is responsible for risk management in your organization? Does that person/department have the tools and resources to identify and assess risks effectively? Does your organization have a comprehensive list of risks that is updated annually?
The risk problems facing many organizations today
· Many complex and broad risks threatening your business
· Lack of tools and processes to identify and assess risk importance and likelihood
· Failure to identify and act on risks until it is too late
· Overspending to avoid risks
· Missed opportunities and profit due to excessive risk avoidance
· Financial losses and reputational impact due to risk failure
The solution for identifying and assessing risks
· Risk Assessment Surveys provide the solutions you need for assessing and managing risk at appropriate levels
· Risk Surveys gather information and insight from managers and decision makers across your company
· Connect the dots to understand where to focus risk initiatives
· Hone in on your organization’s specific risk assessment needs
· Collect suggestions for identifying and managing risk
· Business Risk Surveys typically include 30 – 70 questions that are included in the following risk categories:
1. External Risks
2. Operational Risks
3. Financial Risks
4. Sales, Marketing and Products/Services Risks
5. Human Resources and Organizational Effectiveness Risks
6. Management Risks
Business Risk Assessment Survey Metrics
Identifying and assessing risks and then managing the risks at appropriate levels can significantly increase profit and make earnings more predictable and consistent. A few of the many risks that can be identified, assessed and managed using Business Risk Surveys include:
· Risk of costly legal suits from employees, customers and competitors · Reputational · Competitor · Accounting · Investment · Economy · Customer (risk of losing customers, dependence on key customers) · Insurance (too much or too little insurance) · Accident · Business decision · Risk of employee turnover · Hiring · Product risk / service portfolio · Innovation / product development · Risk of lost business due to product and service problems · Business interruption / continuity · Capacity utilization / availability
· Inventory · Regulatory and legal compliance · Fraud and theft · Environmental /weather risk · Health and safety · Supplier · Outsourcing · Technology · Information · Bias, diversity and abuse · Management and key employee succession · Fiduciary · Facilities
Benefits of Business Risk Assessment Surveys
Business risk surveys generate significant bottom-line benefits and a very strong payback including:
· Reducing business risk uncertainty
· Protecting shareholders, customers, management, employees, board members and the community from costly, embarrassing problems and catastrophic events that may threaten profit, reputation and survival
· Raising awareness of business risks across the organization
· Measuring the importance and likelihood of each risk criteria in each business unit and across the organization, and tracking risk trends
· Reducing costs
· Increasing revenue through smart risk-taking
· Risk survey comments and suggestions identify actions for achieving breakthrough improvements
· Identifying hidden risks and possible solutions
· Creating a roadmap for making breakthrough improvements in risk levels
· Focusing managers’ energies on the highest payback risk management opportunities
· Managing risk more effectively
· Strengthening the culture of risk management collaboration and change
· Facilitating smart risk-taking
Other types of Risk Surveys
In addition to comprehensive Risk Surveys that identify and assess a wide range of risks across the organization, risk surveys that focus in detail on specific risk issues are an excellent way for organizations to identify and assess specific risks in considerable detail. Examples of detailed risk surveys include Contract Risk Assessment Surveys, State Regulation Risk Surveys, Ethics and Compliance Risk Culture Surveys and Sarbanes-Oxley 404 Surveys. Each of these surveys include many questions about these respective risks. Detailed risk surveys can also be conducted for each of the types of risks listed in this article.
Summary message for CEO’s, COO’s, CFO’s, Risk Managers, Internal Auditors, General Counsels and others responsible for Risk Management
Risk surveys are a highly cost-effective way to protect your organization from unanticipated and hidden risks, and to avoid significant costs and threats to your organization’s reputation due to risk incidents. The surveys provide loads of actionable information that can be used to identify and assess risk importance and likelihood, and for creating and monitoring execution of risk management action plans.
Watch the video related to risk management
Oracle catches up with Anita Bradshaw, Consulting Director, Financial Services Vertical, Logica to talk holistic Reward and Risk Management Strategies at its Financial Services Breakfast Briefing, Butchers’ Hall, London, 22nd October 2009
It sounds like they are pushing your issues under the rug with phone calls that lead to dead ends like this . This isn’t the first time according to your other video’s you’ve posted. Keeps tring, don’t give up!
So is there a risk management dept?
Its a shame what my family has been through because of hospitals and doctors like this. I am asking other mothers like myself to please leave comments in support of our beautiful baby girl. Our little miracle is alive today because god has something special in store for her.
I would be pissed.
Understanding and allocation of risks involved in any investment or work is called risk management. First, you need to do a thorough study of the subject to understand the risks involved. Then for each risk you choose a way to allocate it such as buying insurance or having some contractual obligations for other parties involved in the work or the investment.
If some competent engineer/analyst has done a FMECA or FMEA, an FTA, and other safety analyses. AND, these analyses have been peer-reviewed and corrected (if necessary), then I see no need for further modelling.
If the system in question is dynamic (changing part types, changing design, changing configuration), then yes, an ongoing model with a full-time or most-time risk manager may be necessary.
Even if the risk manager is not doing his/her job, a continuing model wouldn't be necessary. A simple peer review of the existing models and analyses would be all that is necessary.
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http://www.meridianlink.com/articles/security_risk.pdf
http://www.netaddiction.com/articles/eia_framework.pdf
http://www.thefreelibrary.com/Internet+Risk+Impact+Summary+Report+for+Q3+2003-a0113377379
First you need to learn to spell interpretation correctly. Mistakes like that in a resume are really damaging.
You may find a course at a community college. I took one from Dun & Bradstreet by correspondence years and years ago and found it quite helpful.
In business, the term operational risk management (ORM) is the oversight of many forms of day-to-day operational risk including the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Operational risk does not include market risk or credit risk.
Good for you. But there is no such thing as MBA in risk management, or MBA in marketing, of MBA in finance. The MBA is a general broad degree covering a wide variety of business issues and training students for careers in managing any area of business up to CEO. MBA students study accounting, finance, marketing, statistics, management, economics, strategy, policy, leadership and similar courses. The MBA was developed because people with technical backgrounds getting promoted into management are not always able to manage, and people in management often don't understand the technical fields they manage. That's why MBA programs prefer students with degrees in other than business and with 2-4 years of work experience. Their graduates learn to manage and can speak the language of the people they manage, whether that is engineering, chemistry, medicine, music, or any other field.
Many MBA programs offer concentrations, but this usually amounts to 2-3 elective courses in a specific field in the second year of the program. So don't worry about a concentration but be careful in choosing the right program. If you find one with Risk Management courses, consider the quality of the school first, and the concentration second.
Before you consider which MBA program is for you, consult the Official MBA Guide, a comprehensive free public service with more than 2,000 MBA programs listed worldwide. It allows you to search for programs by location (US, Europe, Far East, etc.), by concentration (finance, marketing, aviation management, health management, accounting, etc.), by type of program (full-time, distance learning, part-time, etc), and by listing your own criteria and preferences to get a list of universities that satisfy your needs. You can use the Guide to contact schools of your choice, examine their data, visit their web site, and send them pre applications. You can see lists of top 40 schools ranked by starting salaries of graduates, GMAT scores, and other criteria. It's the best service available at http://officialmbaguide.org.
You'd do a lot better researching the general principles of risk management strategy before asking individual insurers (it's a huge subject)
You can read up on various principles through the IAIS which is pretty much the lead organisation in the world for setting requirements for insurers.
http://www.iaisweb.org/index.cfm?pageID=2
Also ..a personal tip …. although obviously rules are different from jurisdiction to jurisdiction, some of the most comprehensive and yet concise I've seen are the Australian ones (they are very hot on risk management in Aus).
You can read the guidance notes here….
http://www.apra.gov.au/General/General-Insurance-PPGs.cfm
That way you can target your questions and get a much better response
What is Quality Assurance?
The answer will be something along the lines of fitness for purpose.
Also, perhaps you could do a bit of research on the Prince2 project methodology…….it covers all of the areas you are interested in.
The information presented is top notch. I’ve been doing some research on the topic and this post answered several questions.
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