Better Risk Management –- Using Risk Surveys to Identify, Assess and Mitigate Business Risks

Business Risk Assessment Surveys Strengthen Your Risk Management Process

Running a company is a risky proposition. Too much risk can be very costly, particularly when things go wrong. Too little risk can also be very costly, especially when smart risks are being avoided or too much money is being spent to limit risks.

Significant risks are often hidden or ignored by organizations. The best way to identify and assess these hidden and ignored risks is to survey managers and staff professionals at all levels of the organization. Business Risk Assessment Surveys collect risk information and insight from managers and other key employees and consolidate it by business unit and your organization overall.

Companies need a clearer understanding of the risks they are taking to protect the physical, financial, human and intellectual assets of their companies. The main goal is not to eliminate uncertainty. Instead, it is to be proactive in assessing and managing risk for your company’s advantage.

Risk assessment surveys are a critical tool for any successful risk management process. It is all about identifying, assessing and managing a wide range of risks at acceptable levels.

What risks does your organization face? How do you know?

Who is responsible for risk management in your organization? Does that person/department have the tools and resources to identify and assess risks effectively? Does your organization have a comprehensive list of risks that is updated annually?

The risk problems facing many organizations today

· Many complex and broad risks threatening your business

· Lack of tools and processes to identify and assess risk importance and likelihood

· Failure to identify and act on risks until it is too late

· Overspending to avoid risks

· Missed opportunities and profit due to excessive risk avoidance

· Financial losses and reputational impact due to risk failure

The solution for identifying and assessing risks

· Risk Assessment Surveys provide the solutions you need for assessing and managing risk at appropriate levels

· Risk Surveys gather information and insight from managers and decision makers across your company

· Connect the dots to understand where to focus risk initiatives

· Hone in on your organization’s specific risk assessment needs

· Collect suggestions for identifying and managing risk

· Business Risk Surveys typically include 30 – 70 questions that are included in the following risk categories:

1. External Risks

2. Operational Risks

3. Financial Risks

4. Sales, Marketing and Products/Services Risks

5. Human Resources and Organizational Effectiveness Risks

6. Management Risks

Business Risk Assessment Survey Metrics

Identifying and assessing risks and then managing the risks at appropriate levels can significantly increase profit and make earnings more predictable and consistent. A few of the many risks that can be identified, assessed and managed using Business Risk Surveys include:

· Risk of costly legal suits from employees, customers and competitors · Reputational · Competitor · Accounting · Investment · Economy · Customer (risk of losing customers, dependence on key customers) · Insurance (too much or too little insurance) · Accident · Business decision · Risk of employee turnover · Hiring · Product risk / service portfolio · Innovation / product development · Risk of lost business due to product and service problems · Business interruption / continuity · Capacity utilization / availability

· Inventory · Regulatory and legal compliance · Fraud and theft · Environmental /weather risk · Health and safety · Supplier · Outsourcing · Technology · Information · Bias, diversity and abuse · Management and key employee succession · Fiduciary · Facilities

Benefits of Business Risk Assessment Surveys

Business risk surveys generate significant bottom-line benefits and a very strong payback including:

· Reducing business risk uncertainty

· Protecting shareholders, customers, management, employees, board members and the community from costly, embarrassing problems and catastrophic events that may threaten profit, reputation and survival

· Raising awareness of business risks across the organization

· Measuring the importance and likelihood of each risk criteria in each business unit and across the organization, and tracking risk trends

· Reducing costs

· Increasing revenue through smart risk-taking

· Risk survey comments and suggestions identify actions for achieving breakthrough improvements

· Identifying hidden risks and possible solutions

· Creating a roadmap for making breakthrough improvements in risk levels

· Focusing managers’ energies on the highest payback risk management opportunities

· Managing risk more effectively

· Strengthening the culture of risk management collaboration and change

· Facilitating smart risk-taking

Other types of Risk Surveys

In addition to comprehensive Risk Surveys that identify and assess a wide range of risks across the organization, risk surveys that focus in detail on specific risk issues are an excellent way for organizations to identify and assess specific risks in considerable detail. Examples of detailed risk surveys include Contract Risk Assessment Surveys, State Regulation Risk Surveys, Ethics and Compliance Risk Culture Surveys and Sarbanes-Oxley 404 Surveys. Each of these surveys include many questions about these respective risks. Detailed risk surveys can also be conducted for each of the types of risks listed in this article.   

Summary message for CEO’s, COO’s, CFO’s, Risk Managers, Internal Auditors, General Counsels and others responsible for Risk Management

Risk surveys are a highly cost-effective way to protect your organization from unanticipated and hidden risks, and to avoid significant costs and threats to your organization’s reputation due to risk incidents. The surveys provide loads of actionable information that can be used to identify and assess risk importance and likelihood, and for creating and monitoring execution of risk management action plans.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.