Risk management is a process whereby threats, of any sort, to a business are assessed and controlled. Such risks may arise from various sources that include legal liabilities, financial uncertainty, technological issues and accidents, strategic management mistakes, and natural catastrophes. When done by professionals, risk management would help an organisation identify all the risks it faces. Moreover, it assesses the relationship between the existing risks and the effect they have on each other. This is a holistic approach to risk management which is generally known as enterprise risk management. It should be noted that the goal is not to avoid the identified risks but to monitor them or turn them into opportunities.
How important is risk management for a business?
If we were discussing this matter five decades ago, we would probably narrow down the scope of our concern to financial issues, resources, and business rivals a given business might have. The new era, however, presents more complex challenges and requires a more detailed investigation of all the risks a business may face. Climate change, political tensions among nations, inflation, and new technological advances constantly create problems and offer opportunities to every business. This mandates a clear understanding of what risks and potentials a business has, which means risk management is at the heart of successful business planning. To put it in a nutshell, unless you do not identify and manage your risks, you will not be able to handle the problematic situations that sooner or later bring up financial issues. Below, we introduce the four main risks that most businesses face.
Simply put, business risk refers to any factor that exposes a business to financial loss or lowers its profits. Anything lowering the chances of a company achieving its financial goals is a business risk and should be dealt with in a proper manner. The source of such risks could be internal or external. An inexperienced manager making wrong decisions is an internal source of business risks. As for external sources, you can think of disease, war, or business rivals. Benefiting from some of the best consultants and business experts, IntegPro can provide you with the right plan to improve your business standards and hence minimise your business risks. Depending on the situation of your company, you might need one or several ISO certificates, and we would be happy to help you get them.
As the name implies, safety risk refers to any factor threatening the health and safety of employees. To ensure that your staff is secure, obtaining ISO 45001 is a must, and that’s where we can help. Working at heights or in confined spaces, exposing to chemicals, and working at night are just a few examples of dangerous situations that many employees or workers experience every day. Lots of hazards are a function of the work itself and cannot be avoided, but safety measures should be taken so that employees are not injured. Depending on the nature of your business, it might involve one or several safety risks that we can identify and handle.
Almost all businesses, regardless of their size and location, affect the environment one way or another. At the global level, we are currently facing air and water pollution, a lack of certain resources, and issues related to waste management. Therefore, the majority of businesses must have an effective environmental management system to prove they are not damaging the environment and making the condition worse. As a result, ISO 14001 has been established, and thousands of companies around the world have already obtained it. Interpro offers the best services regarding the implementation of ISO 14001 and provides you with the necessary tools to maintain an environment-friendly business.
Product quality has always been a defining factor in how successful a business can be. If more customers bring more profit to a business, then customer satisfaction is a top priority. The higher the quality, the more satisfied the customer. Therefore, an inseparable part of any business is managing quality risks. Quality risk management refers to a number of measures a given business must take to ensure that its product quality meets world-level standards. Apart from helping you obtain the ISO 9001 certificate, Integro can provide you with the most efficient way to manage your quality risks in the shortest possible time.
What is the process of risk management?
Risk management process serves as a framework for the necessary actions to manage all risks a business is facing. There are generally five steps to be taken. The first two steps are identifying and analyzing the risks. Then, these risks are prioritized, and solutions are suggested. At the final stage, the best proposed solutions for each risk are implemented. But, this is not the endpoint.
How can we help?
At InterPro, we carefully examine each and every aspect of your business and see if any of the previously-identified risks are still in effect or if any of the proposed solutions need improvement. We will also provide you with monthly reports regarding your business risks and how we are monitoring them.
IntegPro offers risk management in a wide range of sources including:
- BUSINESS RISKS
- SAFETY RISKS
- ENVIRONMENTAL RISKS
- QUALITY RISKS
So, if you intend to minimise your business risks, reach out and get a free consultation.