Risk management is relevant to all organisations: large or small, public or private sector. It should form part of the culture of the organisation, with an effective policy and programme led by top management with clear responsibilities laid down. Organisations face risk every day.
There are several risk management standards including ISO standards. Methods, definitions and goals vary depending on the context, but successful risk management depends on on-going risk awareness across the whole organisation.
Risk management requires a detailed knowledge and understanding of the organisation and the processes involved in the business. We don't believe processes can be managed without consideration to risk impacts, and this needs to be considered at the time of the process change - it's too late if it's picked up later in the year in an audit. Process management goes hand in hand with risk management.
What steps can you take to ensure you have a robust risk management programme?
Lead from the top
Effective risk management starts at the top of the organisation – with the leaders. Having your leaders supporting your risk messaging will help you drive forward a successful risk management programme.
Have clear processes and procedures easily available for all staff
If staff know what they should be doing and how to do it correctly it will significantly help minimise your exposure to risks.
Stay on top of changing regulations
Organisations have to often comply with a host of regulations and legislation. A key component of a good risk management programme is corporate and regulatory compliance and ensuring you’re on top of changes and updates to these regulations could prove crucial.
Consider risk all the time
Risk should be considered at the end of a strategic decision making process yes, but risk should be considered throughout your value chain, including suppliers, customers, partners and key stakeholders. Considering risk in all key activities, and (where possible) linking it to your everyday policies, process and procedures will help give you a competitive advantage.
So what happens when you integrate risk and compliance requirements directly into processes? Risk and compliance awareness becomes an everyday activity, included in the same dashboard that process owners manage their processes with and where process participant's sign-off treatments.
Promapp is an integrated risk management software solution
Take a look at our Risk and Compliance Module to see how you can ensure you’re running an efficient and successful risk management programme.