Any organization faces necessary risks to achieve its objective. To be able to do that, there is a part of the business called risk management that identifies, evaluates, controls and reviews the risks. They are part of all daily decisions and are inherent to any business.
The management can not control all risks, as some of them are of an external nature. Threats can always come from political environment, changes in interest rates, natural disasters or even terrorist attacks. But there are some risks of internal nature, like non-compliance in labour law that the management is able to control.
Media developed a major interest regarding business continuity and risk management. Some companies have no protection and prevention measures hence expose themselves to unnecessary risks. A wider spectrum of risk management includes delayed payments or changes in plans but don't relate directly to business continuity.
For many reasons, companies are best advised to take both risk management and business continuity plans into consideration. They both put under the spotlight the knowledge that keeps the business running and deal with reputation issues.
There is a strong connection between business continuity and risk management. The basic elements a business needs to function are dealt by the risk management. On the other hand, the continuity plan advocates the measures that need to be taken before and after an incident. Together, they offer a better protection for staff, systems and property.
There is not just a vendor or a division affected by the business continuity plan. It affects the entire company. It also protects the trademark, the goodwill and the reputation of the company. Corporate management is about a good risk management along with a good management practice. Ignoring the risks will only bring a loss of shareholders' wealth and other undesirable consequences.
Risk is part of everything we do. A reasonable best to manage it will turn into a better protection of staff, improved decision making and a better management at all levels and efficient use of the resources. It also brings improved working environment, fewer surprises and increased certainty. Risk management means keeping risk under control and a gained flexibility at the time it is most needed.
The management can not control all risks, as some of them are of an external nature. Threats can always come from political environment, changes in interest rates, natural disasters or even terrorist attacks. But there are some risks of internal nature, like non-compliance in labour law that the management is able to control.
Media developed a major interest regarding business continuity and risk management. Some companies have no protection and prevention measures hence expose themselves to unnecessary risks. A wider spectrum of risk management includes delayed payments or changes in plans but don't relate directly to business continuity.
For many reasons, companies are best advised to take both risk management and business continuity plans into consideration. They both put under the spotlight the knowledge that keeps the business running and deal with reputation issues.
There is a strong connection between business continuity and risk management. The basic elements a business needs to function are dealt by the risk management. On the other hand, the continuity plan advocates the measures that need to be taken before and after an incident. Together, they offer a better protection for staff, systems and property.
There is not just a vendor or a division affected by the business continuity plan. It affects the entire company. It also protects the trademark, the goodwill and the reputation of the company. Corporate management is about a good risk management along with a good management practice. Ignoring the risks will only bring a loss of shareholders' wealth and other undesirable consequences.
Risk is part of everything we do. A reasonable best to manage it will turn into a better protection of staff, improved decision making and a better management at all levels and efficient use of the resources. It also brings improved working environment, fewer surprises and increased certainty. Risk management means keeping risk under control and a gained flexibility at the time it is most needed.
About the Author:
Safety2Business is a leading provider of risk management consultants for effective Health & Safety and Risk Management solutions.
