Risk Management is a combination of processes to enable an organisation to identify, the assess and prioritise the threats and opportunities it might face in the future.
Risks can originate from a variety of business situations such as financial or economic risk, data loss or corruption, theft or mismanagement. Risk Management is an integral part of a Business Continuity Plan and the specific needs and objectives of your business will determine the best options.
Starting and running a business involves risk and it is important to identify, assess and make calculated decisions about that risk.
Identify the context
Define the business environment and the framework for managing the risk.
Identifying the risk
Certain industries like financial services and drug development have a clear regulatory framework within which risk is identified, assessed and managed. Others such as electronics and manufacturing have very specific sector-defined risk. Each company needs to assess and agree its own risk threshold which will dictate its reaction to risk and the consequences.
Assessing the risk
Often trying to assess
risk and the potential severity is not straightforward. In an ideal world the loss from potential risks would be easy to measure but that can be difficult as by its’ very definition risk is an
The usual methodology is to combine the actual likelihood of an event occurring (the probability) with the impacted cost of that event (the impact).
Mitigating the risk
The next step is to deal with the risk by either:
Implement and review the risk management plan
By putting in place the necessary controls to manage the risk according to appetite – and most importantly continue to monitor so that inaction and increased risk is avoided.
Signa offers access to specialist qualified advisors with Business Continuity expertise, and fist-hand experience of implementing plans following disaster or disruption events.
If you would like more information on how Signa can help please call us on 01494 562738 or send us a message.