Most Leadership Teams Don’t Understand Risk Management. Here’s What You Should Know.
Risk management has become a buzz word in corporate board rooms and leadership team meetings, but most companies don’t truly understand the full scope of risk management or how to properly use risk management to protect their businesses.
Let’s face it – your business has more risks than ever before. From cybersecurity breaches to an unstable supply chain, to culture and staffing issues – there is a lot that could go wrong.
What Is Risk Management?
Risk management can be quite diverse in its nature and highly unpredictable, especially when risk assessments are conducted by internal teams.
We define risk management as the process of identifying, analyzing, mitigating, and preparing for threats that could affect a company’s financial health, operations, employees, or facilities.
A successful risk management program accounts for a full range of risks an organization may face. Risk management planning must also consider the relationship between risks and any cascading effects on business divisions, strategic goals, and profitability.
Six Key Areas of Risk Management
Risks can be caused by a myriad of internal and external factors ranging from facility safety, natural disasters, cybersecurity breaches, financial mishaps, errors and omissions, active shooters, strategic leadership errors, and many other seen and unforeseen issues.
We Organize Corporate Risks Into These Six Key Areas:
- Cyber Vulnerability
- Leadership Continuity & Cultural Synergy
- Insurance & Risk Mitigation
- Financial Stability
- Facility – Catastrophe & Injury
- Safety & Security
How To Get Started with Risk Management
What you need is a Proactive Risk Management strategy. In other words, a comprehensive, 360-degree view of potential risks and a solid mitigation plan to reduce and manage those risks. You can’t plan for what you don’t see or understand.
All layers of team members should be part of this process. Leaders aren’t the only ones who can point out significant issues – oftentimes its team members handling the day-to-day work or those on the production line are the first to see potential problems.
We also recommend an external consultant be brought in to help guide your leadership team or board of directors through a full risk analysis and planning process. This offers a fresh perspective that can be attained no other way. We offer this service through our Proverus360 Corporate Diagnostic.
Take the First Step
If we’ve piqued your interest and you’d like to learn more, schedule a free, no obligation consultation with our team to get your questions answered.