Over the past decade, several large companies have introduced risk management processes into their organizations.
This is particularly the case for those that have to meet international quality standards. Regardless of company size, every business benefits from implementing a risk management approach.
The purpose of these risk management processes is to identify threats that could target your business and even your partners. After identification, it is important to adopt a plan of action in order to limit their potential impact.
Therefore, effective risk management system must go beyond the usual insurable risks that businesses have long been facing such as property loss or financial risks.
For the majority of companies, a risk management process must be implemented in several steps:
- Identify the risks that threaten the business.
- Prioritize them according to their importance or impact.
- Determine the necessary or preventive actions.
- Implement these actions.
- Re-evaluate periodically, according to a precise schedule, the measures adopted.
Identify the risks
In the next few lines, I will present the risks that are present in a majority of companies.
- Risks resulting from the prolonged and unexpected absence of a member of management following an accident, illness or pandemic such as COVID-19. This process must include a succession plan.
- Risks associated with information security. Is your technology sufficiently secure and safe from inappropriate internal use?
- Risks that jeopardize your company’s image and in some situations the banner to which you adhere. This process must consider a precise mechanism for communication and sometimes even crisis management.
- Environmental risks. Is your site well maintained and is your equipment in good condition?
- Risks associated with the use of drugs or cannabis by your staff. A policy governing the use of drugs or cannabis remains a must today.
By ensuring that a risk management process is in place with the collaboration of your team members, your list of potential threats will decrease therefore benefiting your company.