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Risk Management is a series of processes defined
explicitly for the purpose of reducing internal and external threats to the
organization to an acceptable level. The speed of change, new business
models, competitors, relationships, realities, and suppliers/service
providers - all create risk – the risk of failures and mistakes, but also
of not moving fast enough, or in the right direction, to take advantage of
business opportunities. In the same sense that the fastest cars need the
best brakes, organizations need to
proactively manage risks so that they know how to negotiate the inevitable
"curves in the road" that can occur as it pursues its strategic
aspirations - an approach that recognizes the
need to move forward aggressively but not with reckless abandon. In
addition,
risk management be embodied within the critical business processes in an
organization and in the way people think about
the decisions they make.
Risk management starts with knowing how and where to
look for risks in your business because risks occur in various business
activities and the business environment that you operate in:
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Strategic decisions
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Daily operations
and transaction processing
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Major business initiatives
requiring significant organizational change
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Product
development
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Technology and application systems deployment
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Mergers
and acquisitions
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Downsizing and/or
reorganization
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Regulatory and/or political changes
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Financial structures
There is no "one size fits all" solution to risk
management. In one sense, normal business activity is about taking and
managing risks. What is considered "risky" in one organization might
be considered "routine" in another. Effective risk management
programs, like business strategies, need to define the core ideology that is
unique to the fabric of each specific business.
This is where we can add value by helping you:
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Define and develop
your risk management program |
We'll work with your executive team to
define what risk management means to your organization and your business
strategy. Using our baseline
Principles of Risk
Management as an example, we'll help you to define a communicable set of principles that are
unique to your organization - principles that will govern how you want
risk management to be seen throughout your organization. And we'll help you define how to best
integrate your new risk management program into your organizational
structure, business strategy and performance measures. |
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Develop a risk
profile |
Using our baseline
Enterprise Risk Framework as a
starting point, we'll help you develop a risk framework and common
language for risks in your organization - what they are and what they
mean to you. We'll help facilitate risk workshops among your key
business leaders to develop an initial list of priority risk areas and
define management's tolerance for risk in these areas. And define an organizational plan for both the
evaluation and communication of risk management processes throughout
your enterprise. |
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Evaluate/improve
existing risk management processes |
We'll work with risk
owners to develop the process for analyzing specific risk management
processes in your organization and then facilitate the analytical work
and define the gaps and weaknesses in the existing processes, determine
root causes and quantify the implications to your organization. We'll
help evaluate and design ways to cost-effectively manage the risks and
help you make the right choices – designed specifically for your
business needs. We'll work with you to develop actionable plans
and timeframes for making near-term improvements. And help build a
continuous improvement mentality into your people so they will know how
to address changes in risks as your organization moves forward. |
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