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Effective
risk management programs start with a framework that can: a) be understood by
the organization as a whole and, b) establish a way to integrate risk
management with other strategic and operational business activities and
decisions.
A framework also is a starting point to establish a
"common language" about risks and their implications to the business as a
whole. Common language is essential - without it, there is no way to
effectively communicate among the different constituencies and their
different backgrounds, skills and operational orientation.
The model below is simply an example - a
staring point of both how to look at risk in the organization and how to
define risks within that framework and the organization's overall business
model.
Contact us for more information on the specifics of the risks in each of
these areas.
Geo-political
Geo-political risks relate principally to the physical locations that you operate in
and the political, social and regulatory environment of those geographies.
Competitor
Competitor risks relate principally to actions of
competitors or new entrants that can significantly alter competitive
position or the industry landscape.
Information
Information risks relate to the ability to
accurately analyze or report past activity, project future activity or
understand competitive and market trends on a timely
basis.
Financing
Financing risks relate to the ability to finance the
growth of a business, protect that value of financial assets and
maintain/protect that ability to cost effectively conduct business across
geographic boundaries.
Organization
Organization risks relate principally to the structure of an organization,
its governance and empowerment model, its ability to communicate internal
and externally and its ability to manage relationships with critical
third-parties.
Customer
Customer risks relate to the ability to attract, retain
and nurture profitable customers.
Process
Process risks relate to the performance of core business processes and
their alignment with the strategic and directional needs of the
organization.
People
People risks relate to the ability to hire, train and
retain a workforce that is motivated to share in the success of the
organization while simultaneously achieving their personal goals and
aspirations.
Supplier
Supplier risks relate to the ability to consistently
receive quality products or services from suppliers (including outsourcing
providers) delivered on-time at an acceptable cost level.
Technology
Technology risks relate to the performance of
information technology and the integrity and reliability of data and
information provided to the business through information technology.
Contact us for more information on the specifics of the risks in each of
these areas.
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