A risk management strategy is very much an ongoing process. It requires commitment right across the business to deliver a new approach, a new way of working, a new mindset. It drives a shared goal of increased performance and efficiency, and, once embedded, you will start seeing new behaviours within your business showing that you’ve got it right.
Here’s when you know risk management is working for your business.
You feel in control
As business owners, this is a priority. Risk management gives you the confidence that you’re making decisions based on a sound understanding of the risks involved as well being able to shape strategies to manage any risks if they occur.
We’re living and working in a new world that is more volatile and uncertain. The speed of change and the velocity of risk has increased significantly. From globalisation, rapidly shifting consumer preferences and disruptive technologies, risk management helps you be more agile as you determine ways to respond to the changes around your business.
Your business is engaged at all levels
Risk management is a way of thinking. It’s understanding and identifying the threats your business is exposed to and the capability to react to these proactively. Fostering a commitment to the process at all levels is vital for success. Be it how your team interacts with your risk processes as well as how they feed into it. Training is key here. If you have invested in a risk management platform, your software partner should provide comprehensive training and coaching to maximise a positive user experience. This needs to go beyond tools training to include added-value knowledge/best practice sharing and online support. Choosing a credible partner will help your business become risk mature and this in turn, will free up your time to focus on business priorities.
Improving business performance
A working risk management strategy helps you improve your decision-making processes. You can achieve short, medium and long term goals understanding the impact these will have on your business. Ultimately your risk management activity provides a real-time barometer of how your business is performing, as well as the interplay with suppliers, partners and customers.
You’re reporting in real-time
You can’t manage what you can’t measure. Ensuring your process is underpinned by the right tools to track your performance against objectives is key. Proactive risk management drives real-time reporting within your business, giving you access to live, consistent information, as and when you need it. As a business owner, this results-focused reporting can garner support from key stakeholders as well as capture the right level of detail to help drive divisional and personal ownership.
You lead by example
Whether you’re the founder, CEO, or MD of your business, you are risk management’s champion. Set an example by embracing the new opportunities and enhanced efficiencies delivered via your platform and processes. Really share how you engage with it to drive your own workflows, business processes, and decision making.
By showing that you’re a committed risk practitioner/champion yourself, you educate other users by communicating the “why” of your risk management approach. Your team will see the value it brings them, creating a culture of high performance, improved productivity and efficiency.