While working on a presentation for a Mining sector conference recently, it struck me just how important gestion des risques is designed for ensuring that strategic plans become reality. Not just risk management by itself, but fully integrated risk, where just about everybody in the organization is involved.
Here’s why. Often risk management responsibilities are allocated to some relatively small number of people with specific functions like safety, environmental management, operations, finance and strategic planning. This tends to resulted in a siloed risk management structure where risks are managed independently with limited communication with many other domains. Many risks remain invisible for some other aspects of the business because they’re expected to be handled as an element of the daily responsibilities in a specific domain area, though they have broader impacts. An enterprise-wide method of risk consolidates risks from all of domains into a common framework the location where the implications of risks might be assessed and managed in a manner that addresses the complete scope in their potential impact through the entire business.
An important good thing about shifting to some more holistic take a look at risk is the link between the risk management process and business planning activities. As an example, risk might be that are part of the business budget by including cost estimations from threats, expected costs of planned mitigation actions, and potential savings and growth from opportunities. This provides a danger-adjusted take a look at cash flow that is generally better aligned with actual future performance as well as driving stronger financial results.
However, the rewards go much deeper than merely improving cash flow (although that in itself is reason enough). Aligning business objectives with risk handling strategies who have specific action plans creates a degree of resilience that may be proven to raise the chance of meeting performance objectives by any means levels of the organization. Risk management starting in the strategic level and cascading down throughout the organization enables more efficient decision making, alignment of priorities and effective consumption of resources to mitigate threats and exploit opportunities.
While these top-down risk planning activities are typically annual with updates on a quarterly basis, a bottom-up approach should also be occurring, on an infinitely more frequent basis that deals with changing conditions on time. Identifying threats and opportunities earlier improves the chances of getting the plan, and enables the group to deal with the risk once the treatment cost is at its lowest.
Another part of risk management that is certainly often neglected, mainly because people don’t have suitable tools, is the quantity of rigor that is applied to the management of a danger. The character for each risk is highly recommended along with its potential impacts assessed. As an alternative to having a ‘one size fits all’ approach, anyone ought to be able 58dexepky introduce a danger by communicating an appropriate amount of information, combined with some degree of analysis and treatment which makes sense regarding time, mitigation resources and risk appetite.
An all natural strategy to risk management starts as early as possible, perhaps being a ‘concern’ before meeting the organization’s standard criteria for any ‘risk’, and extends past the analysis and treatment to add monitoring of actual outcomes, thereby fostering continuous improvement and organizational learning. By using a stop-to-end holistic take a look at risk management, involving stakeholders throughout the business using a single risk platform where information and data about risks may be shared, organizations develop better foresight and manage risks more proactively, which leads to better operational, financial and strategic results.