Why start with a risk assessment?

24. March 2020 / Topic: 

Every business opportunity comes with risk. Řyou are making a new acquisition, implementing a major investment project, deciding to cooperate with a major supplier or customer, entering a new market, developing a new product. Or myou are changing or improving your processes, you want to deal withby competitorschanges in the market environment. You need to respond to emerging laws and regulatory measures a other threats (climate, cyber, technology, interest rate, etc.). 

Ask yourself: what are our main problem areas? What are our process gaps? Are we compliant with all regulations and laws? Are we at any significant risk of failing to exercise due diligence or are the company or its management at risk of criminal liability? Certainty is hard to come by. And the situation is becoming increasingly opaque. 

Many companies ranging from consultancies, insurance companies and banks, brags about taking the risks off your hands. But is it really? And what do they mean by risks? Everyone has something a little different in mind. Poradci most often believes project, process risks, Cyber and, exceptionally, strategic. Pospitals usually offer cover risks to property, at of life and ofResponsibilities. Banky Then Typically provided by financial risks, e.g. liquidity risk, risks currency and interest rate risks.   

What is really important 

Experienced business owner or Her senior manager but first wants to understand what risks are significant just for his the company, its industries a its market in that particular situation. Where his company has bottlenecks in the implementation of Market opportunityí (new orders, activities, projectů, transactions). All this withwith regard to the level of the management and control systemto the changing dynamics of the environment.  Tfirst, after assessing the opportunities, threats and costs of mitigating the threats, the will want to decide what risks to manage and in what way. 

So where to start 

At first glance, it may seem that it is not possible to address all the areas described above at the same time and questions and find some order and meaning in them. There is But Universal, structured Access in the form of a risk assessment frameworkto deal with your specific risks your company. 

What this will bring and what will be the output 

You'll be clear about the biggest risks to your business and how to manage them. You will specifically need: 

  • Methodology for conducting risk assessments,
  • a catalogue of risks with a detailed description and ranking of their severity,
  • identifying the owner of a particular risk,
  • a proposal for corrective action for each significant risk,
  • and a project action plan to reduce the severity of the identified risks.

Who and how can help you 

Risk management is a special discipline. A guided process of conducting several workshops with your managers will enable you toKushento the emu teamu of experts prepare a risk catalogue just for you. They will guide you through the entire risk assessment process, provide a methodology and train your staff so that you can repeat the process yourself at any time, depending on your company's needs. They will help you define a set of corrective actions and controls, or help you decide what to do about a particular risk (eliminate, reduce, transfer/insurance or accept) depending on the significance of the risk and the cost of treating it. 

Risk matrix

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