Risk Management, What is it? What are the Benefits and Dangers of Doing Nothing?

By Mark Hamon, the Risk Management Specialist from KONA Group All businesses today have to devote time and effort to some kind of risk management plan and some businesses do it better than others due to better staffing and resources. Risk impacting on every day business operations can be classified as either known or unknown however the risks everyday business owners can be exposed to, includes possible litigation risk, workplace safety hazards or damage, workplace injuries or fatalities, environmental hazards and incidents, financial losses, quality related failures with products or services, loss or reputation and customers. Most business owners are aware of the need to have insurance premiums and a perhaps Safety Management Systems, but may not be aware of other forms of risk management and the impact it could have on their business. A business manager should carry out an overarching risk assessment of their entire operation, so all areas of their business have been risk assessed with controls in place. Risk will never be 100% totally eliminated, but should be reduced as low as reasonably possible to an acceptable level by all key stakeholders involved. A good integrated risk management plan can include:
  • Business Risk and Continuity Plan
  • Safety Management System
  • Environmental Management System (Due Diligence Portfolio)
  • Quality Management Plan
  • Lean Principles
  • Training Management Plan
By incorporating an integrated risk management plan into your business, you will reduce the chance of an unexpected or unplanned risk event from impacting on your business. This can include risk impacting on business operations, reputation, liability risk, customer perception and profitability. Check out our Risk Management page  for an up to date list of the Policies and Procedures you must be in control of in 2015 to protect your people and business. The various systems of Integrated risk management, are bench marked against global standards of excellence, so apart from protecting your business, it can also be used as a marketing tool to promote customer service and reputation. For some businesses, the elements of an integrated risk management plan are also pre-selection requirements in their contract and tender process. It’s not enough these days to be the cheapest quote to win the customer, you need to show evidence of how you manage risk in many industries. So where to from here? A good integrated risk management plan, will reduce litigation risk, loss of customers or reputation, risk of financial loss, reduced insurance premiums, reduce environmental damage, reduce down time or unexpected interruptions, reduce equipment or product damage, reduce employee injuries or risk of fatalities. By consulting Mark Hamon, the Risk Management Specialist from KONA Group, an evaluation of your business can best determine where to priorities actions for improvement as a business risk gap analysis will show you the risk exposure to your business and the controls needed. Bottom line is don’t leave yourself exposed to possible litigation risk and contact KONA Groups Risk Management Specialist Mark Hamon at [email protected] or phone 1300 611 288