Risk Management Best Practices Learn from the Industry. #Top10
1. Identifying and assessing risks• Risks are everywhere. To be successful as an organization is crucial to identify assess and manage any risks that could affect business. To identify risks for an organization, it is important to look to the specific characteristics of the market and environment in which the organization operates.
2. System approach• To manage risks properly and effective a system approach is necessary. Invest in the right tools and knowledge to identify and quantify risks.
3. Risks often consist of a serial related events• When an organization identifies quantifies risks and establish action plans it is important to keep oversight on the interaction and relationship between the various risks. This allows an organization to respond better when an event occurs.
4. Risk management is a continuous process• The market is changing, the world changes and so do the risks change. To effectively manage risk, it is important that risks are regularly evaluated and adjusted. Another important aspect of the risk management process is identifying and assigning ownership.
5. Provide dedicated resources and clearresponsibilities• Effective risk management requires staff with knowledge and experience in this field. As an organization you can and want to invest here. Make the right managers responsible for managing specific risks.
6. Analyze the costs of mitigation• The creation of programs or actions to manage risk and control will require additional investment.
7. Minimize opportunities• Risks are directly related to the activities that an organization performs. By selectively in the structure of the organization and business risks can be minimized.
8. Assessing the risks by an external party• Use a third party (someone with knowledge of risk management) to the identified risks to be assessed. The feedback from an external party can be very enlightening and perhaps lead to new insights. If possible, it is highly recommended to have a professional third party to support the whole process of implementing a risk management process.
9. Monitoring of risks• Invest time in the development of a management dashboard with which risks can be easily analyzed. Combine the risks in the dashboard and how these impact on the organization.
10. Create a risk management culture• Successful risk management implementation requires:• Train the organization in the practical aspects of risk management.• Training should focus on all available positions within the organization including management.• Clarity about the responsibilities of all stakeholders with regard to risk management.
Examples to promote risk management:• Involve all employees in the risk management process;• Management should encourage and support positive risk management process;• Create clear roles and responsibilities;• Invest in training to increase employee knowledge;• Take on risk management as an integral part in such work discussions, meetings and appraisals;• Define clear risk management objectives for the organization;• Assess employees for their input to the risk management process.
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