Every business has its challenges in its quest for growth and development. On their way to success, businesses must clearly navigate, spot and steer clear of these challenges.
Recently, I read an article published by Forbes titled “Risk Management in Business”. Having an extensive experience in corporate risk strategy, this article greatly resonated with me. It discusses three key steps for responsibly managing risks that can hinder the company’s future success: identify, assess, and control.
1.Identify
In order to bring risk under control, it is vital to know what those risks are. Identifying those risks requires an in-depth examination of all aspects of the business. Although there are some risks that can be easily identified (e.g. nature of the work you do), some remain unseen. The latter poses the greatest threat if not addressed.
“In an effort to protect your company’s prospects, it’s crucial to be both honest and thorough in identifying all potential risks; simply not thinking about them won’t make them go away.”
2.Assess
Post identifying the risk, the nature and the severity of the risk must be examined. Assessing whether the risk is likely to happen and the impact it can have on the business. It is vital to be honest during this process.
“Take all measures into account in noting a risk: frequency and repetition add to a potential risk, and severity can range from a basic harm to catastrophe, depending on the nature of your work.”
3.Control
After assessing the risks at your business, controlling and mitigating the risk is the next step. Although there are some risks easy to eliminate, other instances of risk are not easy to avoid. However, steps can be taken to reduce their impact.
“If there’s a set of actions wholly unnecessary to your work that present a risk, simply forbid employees from those behaviors. Likewise, some tasking has safer alternatives to achieve the same means, and those safe alternatives should be insisted upon by you and your management teams.”
Read the original article here
