New Strategies for Managing Risk are Mandatory in Today’s Business Environment
By Srini Ramabhadran and Mieke Jacobs
As published in industryweek.com, February 2016
Risk-based planning is a familiar concept for most companies. Many business leaders realize that the right operational risk management (ORM) system helps to lower operating and auditing costs, reduce operating loss, increase customer and staff satisfaction, optimize insurance coverage and premiums, and promote compliance with regulatory requirements.
Also, the operational discipline cultivated as part of an effective ORM system allows leaders to maintain consistency and reliability while maximizing efficiencies throughout their manufacturing and production processes. But recognizing the importance of risk management doesn’t always translate to having an effective strategy or system in place. Adopting a strategic approach to ORM can ensure the optimization of resources while maximizing risk reduction. Not all ORM strategies are the same, nor should they be.
Organizations must develop a strategy that complements their business model and operations. This requires a solid understanding of the specific risks they face, as well as the people they employ, and then fully integrating the system into the company’s day-to-day operations.
We invite you to learn more about these new strategies for managing risk by downloading the full article.