Risk
Management
What is risk management?
Risk management is a process which helps your organisation to identify, evaluate and better manage risks in a structured way. This is a recurring process as risks and their impact on your organisation are constantly changing.
By periodically identifying the risks to which your organisation is exposed, you are able to look ahead and, where required, take proactive measures. Measures which mitigate the consequences of the risk to an acceptable level for your organisation.
Which measures are relevant for your organisation depends on various factors such as the type of organisation, the market in which your organisation operates, the contractual obligations you have entered into, applicable laws and regulations and the risks your organisation wishes to take and/or avoid.
Objectives of
Risk Management
- Looking forward and balancing opportunities and risks.
- Preventing risks from having a major impact on your organisation.
- Making well-informed decisions about the use of your company’s resources.
- Assisting in setting the right priorities.
“Never take both hands off the pump. As an entrepreneur, you need to be on constant lookout for opportunity, and that will involve risk. But you minimize those risks by keeping one hand on the pump that is producing for you.”
Kenneth E. Behring
-Increase your resilience-
Why is risk management important to your organisation?
Your company and the market in which you find yourself are constantly changing. Risk management therefore looks ahead to potential risks which may come your way and which may hinder the achievement of your business objectives. By taking effective control measures, you prevent unnecessary damage and costs without compromising your opportunities. Risk management thus contributes to the success and continued existence of your company.
A solid risk policy encourages people to think about risks, enforces conscious considerations and decisions, and acts upon them. In addition, the implementation of a high-quality risk policy may be a legal or contractual obligation for your company
“Every advantage (opportunity) has
its disadvantage (threat)”
Johan Cruijff
Benefits of a solid risk management policy for your organisation
It avoids risks without hindering business growth – A business needs to take risks to grow in existing and new markets. A solid risk policy ensures well considered risk-taking without paralysing your organisation through fear of the unknown. A quote from an unknown Formula 1 driver sums it up well: “if I cannot rely on my brakes, I will not dare to go full throttle”.
It increases the confidence of customers, investors and partners in your company: By taking the right measures in time, you anticipate possible situations causing wrong or even disastrous consequences for your company, your customers or society. As a result, your organisation can take a bullet and you can deal with crisis situations quickly and effectively. This stability and reliability of your company translates into loyal and satisfied customers, investors and partners.
Create value
Companies create value by taking risks, but lose value by not managing risks properly.
Successfully obtaining new orders – A potential incident at another company may have an impact on the entire supply chain and on the company’s own operations. Therefore, before a third party enters into a new cooperation with your organisation, this party wants to know in advance how your organisation deals with the detected risks which could endanger the services. If this does not meet expectations, your organisation may not qualify for the new assignment and you may miss out on potential revenues.
It stimulates effective entrepreneurship – A solid risk policy contributes to taking responsible decisions. After each decision is made, you must take action and thus use company resources, employees and/or money to implement the decision made. Badly considered decisions can therefore lead to disinvestment and costs if it turns out in retrospect, the decision taken does not have the desired result.
Recognising and seizing opportunities with a firm understanding of and control over the risks involved. This is called effective entrepreneurship!
Competitive advantage – All the above benefits help to strengthen your reputation, your competitive position, the growth of your business and possibly your financial balance sheet.
-Know where you stand-
Important aspects to consider when designing and implementing the risk management process.
A solid risk management process includes at least the following points:
Risk identification
Identify all possible risks which could jeopardise your company’s objectives. Distinguish between long-term risks (e.g. new laws and regulations, introduction of new technology) and short-term risks. Focus on both internal and external risks and risks related to your processes, staff and the technology used. The result is a risk checklist relevant to your business.
Risk analysis
After identifying the relevant risks, analyse the information you have collected. Consider which risks could be the most threatening and deserve the most attention by mapping the probability and consequences for your organisation for each risk. Then place the risk in a so-called “risk heatmap” to determine whether the risk in question requires attention from your organisation.
Risk management
After you have placed all the risks in the risk heat map, you should consider what your response will be for each risk. Four reactions (A.A.R.T.) are used as standard for this:
- Accept (i.e. do nothing at the moment and reassess this risk and strategy in a year’s time).
- Avoidance (i.e. quitting the activity posing the risk)
- Reduce / Control / Minimise (i.e. take action)
- Transferring (i.e. insuring or outsourcing)
Monitoring and communication
Risk management is by definition a continuous process and therefore the risks and the risk management process should be continuously monitored for new developments, the correct execution of the process and the quality of the results. In addition, communicate the results to the right stakeholders and employees in a timely manner so decisions can be made and people become aware of the importance of risk management. This contributes to “the why” of implemented measures and stimulates the desired behaviour.
-The possibilities-
This is what we can do for your risk management policy.
Detecting, managing and reporting your risks involves many activities.
It is therefore impossible to indicate whether and what we can do for your challenges within the field of risk management. In the table below we present some possibilities which hopefully will inspire you and lead to a further introduction to our services.
Your wish
Our added value
Do you want to identify your risks?
Option 1: To entirely document, implement and execute the risk management process.
Option 2: Facilitate and supervise the risk analysis workshops.
Option 3: Translate your defined risks into concrete and effective information security and/or continuity measures.
Do you want to create or update your risk management strategy and policy?
Option 1: We write the entire risk management framework and tailor it to your organisation.
Option 2: We can analyse your existing policies and provide you with recommendations on how to improve them.
Would you like to integrate risk management into key business processes such as project management, product management or asset management?
Option 1: Together with your organisation (or entirely on our own), we make risk management part of your designated process (e.g. project management). We adapt or deliver process descriptions, train your people and ensure correct implementation and execution of the new process component.
Option 2: We describe the risk management process after which your people adopt it and incorporate it into their own processes and procedures.
Would you like to make clear agreements with one or more (key) partners or suppliers based on the results of your risk management process?
Would you like to bring about behavioural change within your organisation regarding risks, information security and/or business continuity?
Option 1: We facilitate workshops in which we discuss specific topics relevant to your organisation and tailored to the goal you wish to achieve.
Option 2: We prepare awareness materials which your organisation can use to support its own awareness campaign.
Option 3: We can provide specific (in-company) training to help you effectively roll out your business continuity strategy. Also refer to our training page.
Would you like to hire (temporary) knowledge and experience for implementing risk assessment workshops and/or for implementing measures to reduce your chosen risks?
Option 1: We can temporarily or semi-permanently perform the role of Risk Manager, Security Officer or BCM Officer.
Option 2: We can participate as experts in your projects within the field of information security and/or business continuity and support your project team with the implementation and assurance of measures.
Option 3: We can become part of your Security or BCM department and help them to achieve their objectives.
Do you wish to receive an (in-company) training on risk management / ISO 31000?
Option 1: We can train your employees to apply all phases of the risk management process according to ISO 31000.
Relevant standards and legislation
The table below lists a number of important standards, industry best practices and laws and regulations which may be relevant to your organisation and with which Triple A Security has knowledge and experience. If you would like guidance in implementing one of these standards, please contact us without obligation.
ISO 31000
ISO 31000 provides organisations with a framework containing a set of principles and processes to manage risks regardless of sector, size or business activity. One can apply this standard to project management, product management, contract management, information security and/or business continuity management.
More information ISO 31000 Risk-management
ENISA
ENISA has a website where more information can be found on designing and implementing a risk management process.
More information: ENISA Risk-Management