Many companies are concerned with being as profitable as possible in an increasingly competitive marketplace. However, in the quest to add more revenue, one thing to never ignore is safety and risk management. Sadly, according to research from the Organization for Economic Cooperation and Development, many companies fail in this area, particularly risk.
A report which surveyed the risk management practices in 27 countries, found that the primary concern of many companies is mitigating financial risk, but to the detriment of other potentially harmful business areas.
“The report finds that, while risk-taking is necessary for business, the cost of risk management failures is still often underestimated, both externally and internally.” “Corporate governance should, therefore, ensure that risks are understood, managed, and when appropriate, communicated.”
Risk Management Practices Should Be Ongoing
In the world of business, issues that are not always apparent can be the most harmful. That’s why it is essential to guard against any unforeseen circumstances that can potentially knock an organization off course.
The Project Management Hut offers advice for companies looking to improve safety practices, particularly relating to mitigation. The website states that monitoring is crucial in determining negative impacts, making changes, or reducing the chances of damaging events.
Another helpful tip offered by the website is to take a team-centered approach to risk management. Ensuring that everyone involved understands the long and short-term effects of a potential situation can greatly help develop a strategy to manage the situation effectively.
A critical piece of information offered by the Project Management Hut is that risk is not always a static situation. Some are dynamic and fluid, so appropriate contingency plans must be in place to minimize harmful business effects.
Considering these suggestions, as well as others, can help organizations identify potential issues and craft solutions to deal with them. Safety and risk management isn’t a one-time procedural issue; it is a process that is ongoing, even when operations are running smoothly.
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