What is Risk Management?
It’s the obvious question, and the answer is as powerful as it is simple: For better business performance. The business case for organisations to embrace risk management is stronger than ever before.
Applying risk management to your business projects and programs allows you to:
- Allocate resources to the things that can have greater impact on delivery
- Secure more repeat business or new business from existing customers
- Minimise contingency: efficient costing, scheduling and allocation of manpower
- Choose to compete on price, invest or take profit
- Increased confidence leading to:
- Increased share value
- Improved credit ratings: Standard & Poor’s, the rating agency, now tracks risk management capability as part of its ratings assessment
- Reduced business insurance costs
Embedding enterprise risk management in your organisation will help you to:
- Improve predictability of profit and timescales
- Protect and improve your reputation by consistently delivering on time and on budget
- Become a supply chain champion
- Your customer knows their supply chain is only as strong as its weakest link. By demonstrating risk management capability, you won’t be that weakest link
