Five Questions to Ask Yourself About ‘Risk and your Business’ — Nicola Fraser
Nicola ‘Nikki’ Fraser, a Managing Partner at Next Key Services, was interviewed by Scott MacKenzie on The Industrial Talk Podcast to discuss aligning risk management with your organizational strategy and goals.
Nikki, a results-driven inclusive leader, shared five tips and questions we all must ask ourselves about risk and business.
Risk management is often viewed as a compliance issue that requires rules to be put in place; however, many risks (e.g. risks driven by external factors such as natural disasters, macroeconomic shifts, or a health pandemic) can’t be managed through compliance. This requires open discussions about the risk and the potential impact on the business — this is easier said than done.
You can watch the video podcast, or read excerpts of what Nikki shared below.
Nikki’s 5 key tips, and questions to ask yourself about your business:
- Assess changes in your business strategy
- How has your business strategy evolved?
2. Brainstorm the key risks associated with your strategy
- Key risks should be focused on your people/team/employees, your customers, and your vendors.
- Identify the “what-if” scenarios related to each that might affect your strategy?
3. Build process foundation
- Can you mitigate or reduce the risk with new or modified processes?
4. Alignment of risk management with your strategy is an ongoing assessment
- Is the culture within your organization one that encourages and supports the discussion of risk associated with changes in the business?
5. Financial planning matters
- What are your Key Performance Indicators (KPIs)? Meaning, what are the key metrics that provide insight into what has happened and what may happen in the near future?
- Are you looking around the corner and using scenario planning to help assess the financial impact on your business?
“Risk management discussions can be difficult as it is not natural for us to talk about what could go wrong with the things we work hard to achieve. If done well, you can shift your focus and energy to seeking opportunities while leveraging the foundations established for your financial and risk management…which enables opportunities for innovation and growth to enter your business.”