Many organisations do not understand the widespread benefits of a risk management strategy. In many cases, they might be unable to accurately define risk management! This creates a problem. It’s hard for senior directors to get the buy-in to implement mitigation procedures when risk management isn’t common knowledge. Here at Impaqt we have developed a risk management offering to help support business leaders fulfil their vision of running safe, efficient, high-quality organisations.
The beauty of a well-implemented risk management program is it’s built on a foundation of standardised risk assessments to help companies prioritise their risk based on its potential impact. It is better to know, understand and manage risk as the risk is there.
Taking a proactive approach to risk management will give the following benefits:
Everyone has to manage risk
Every organisation faces risks. Risk is inevitable in order to achieve success. The purpose of risk management is not to eliminate all risks. It is to minimise the potential negative consequence of risks. By working with Impaqt risk managers, employers can make smart risk decisions to improve the chance of reward.
Risk management makes jobs safer
Health and safety are critical parts of our risk manager’s role. We actively seek out problem areas in the organisation and look to address them. Establishing a detailed risk profile is the starting point. We use data analysis to identify loss and injury trends and implement strategies to prevent them from recurring. This clearly benefits employees in physical work environments, and also office employees and those in similar positions through methods such as ergonomics. A safer workplace is better for everyone and is dramatically impacted by risk management.
Risk management reduces unexpected events
Our risk manager’s goal is to map out all potential risks and then work with the business to prevent them or best manage them. It’s impossible to think of every possible risk scenario and address them all, but our risk managers make unpleasant surprises less likely and severe.
Risk management creates financial benefits
With trend analysis, our risk managers can spot high-frequency events and work to minimise repetitive losses. Incidents will be less likely to occur and have less of an impact when they do, potentially saving the organisation thousands if not millions of pounds. Risk managers are also the experts who procure the appropriate levels of insurance to maximize the financial impact of the risk management program.
Risk management improves communication
Horizontal and vertical communication are essential for organisational and employee well-being. Our risk managers can help aid horizontal communication by providing a centralised touchpoint for all risk data and providing reports and analysis. Risk managers promote vertical communication by setting expectations and relating data to organisational goals.
Why risk management is important
Risk management prevents reputational issues
Many risks involve a reputation factor: something happens that causes the public to negatively view the organisation. Reputational issues could impact individual employees as well. Good risk management greatly decreases the likelihood of this fallout. When an incident inevitably occurs, a risk management program and processes will quickly contain the event and lower the chance of escalation and widespread negative consequences.
Risk management benefits culture
A strong risk management culture is better for all parties: frontline employees, line management, executives, and decision-makers. It creates a mindset of prevention and safety that permeates the organisation and influences the actions of employees. It sets expectations of performance and sends a positive image to the public.
Risk management guides decision-making
Decision-making is a challenging process, especially when making significant choices that will have a large impact on future success. Risk management data and analytics can guide employers in making wise strategic decisions that will help meet and exceed company objectives. Information can be used to determine the strengths and weaknesses of a decisions and provide recommendations on what risks to pursue and which to avoid.
