Here's how you can spot and evaluate potential risks in your business.

The hardest part is to want to see the risks. Once managers are aware they need to make a decision on either mitigate or accept the risk. Most of time people are blindsided by processes and do not see beyond the powerpoint or the excel file. If one want to be risk aware, need to look at the environment and understand that PPTs and XLS are just tools. Ask the right questions and be ready to listen the answers. Above all, be ready to invest on mitigants or accept the risk.

Risk awareness is crucial in risk management. Risk awareness can be enhanced within the organisation by training the employees and providing them with adequate knowledge to identify potential risk in their daily processes and activities. Enlighten the employees to understand risk management is everyone's business and they are all gate keepers. This is important because the risk that is yet to be identified cannot be treated.

Em um mundo empresarial cada vez mais complexo e dinâmico, a conscientização sobre os riscos que uma empresa enfrenta é fundamental para a sua sustentabilidade e crescimento. No coração desta conscientização está a minha metodologia de avaliação de riscos chamada SINAF, que avalia cinco grandes categorias de riscos que toda empresa deve gerenciar: Soberano, Indústria, Negócio, Administração e Financeiro. Quer saber mais, confirma o artigo no meu perfil.

Absolutely! Acknowledging the existence of potential risk may initially be a scary thought, however, the awareness of its existence will help to put things into perspective in how to approach such and what next steps to take. Risk awareness cautions us and so smarter approach is the way to go. Not only are you dealing with situations but also dealing with people and so emotional intelligence comes into play too.

One thing I have found helpful is training and continuous engagement of employees both formally and informally. This ensures that employees at all levels becomes aware of the risks in their work spaces, what can go wrong and can spot such as well as timely report such for prompt mitigation. In my experience, timely risk spotting cannot be left to the risk managers, team leads and senior management alone. This risk awareness culture needs to be entrenched in the organization to be a successful one.

Strongly agree with the matrix, but the key of risk identification should be the people not the matrix. We should add expertise judgmental and behavioral for any decision making.

Identifying the risk itself is one of the task. Most of the times it is not even identified. There are various tools available in the market based on manual intervention or even based on AI. One of the best way to assess the risk is by implementing stress testing. Stress testing comprises of scenario analysis , historical data , hypothetical, event driven scenarios and portfolio driven. Stress testing needs to be done on regular basis as it is an ongoing process where data changes on real-time basis, hence changing the outcome.

Much has been written about the limitations of risk matrices so make sure that you are aware of these and take them into account in your prioritisation and risk mitigation strategy. Here are some references 1. Cox, L. A. (2008). What's Wrong with Risk Matrices? 2. Thomas, P., Bratvold, R. B., & Bickel, J. E. (2014). The Risk of Using Risk Matrices 3. Ball, D. J., & Watt, J. (2013). Further thoughts on the utility of risk matrices 4. Duijm, N. J. (2015). Recommendations on the use and design of risk matrices. 5. Hubbard, D. W., & Evans, D. M. (2010). Problems with scoring methods and ordinal scales in risk assessment.

example of one of the potential risks is the loss of trained staff. We must work to preserve them, and this requires creating a system that limits the matter. The other example is the risk of recurring technical malfunctions as a result of lack of quality maintenance, for example, and this requires analysis and follow-up to improve maintenance to avoid the resulting dangers. From reputational and material loss to the organization, it is time to evaluate its impact and probability of occurrence. Consider creating a risk matrix where you can classify each risk according to its severity and likelihood of occurring

Risk mitigation strategies are plans or actions taken to reduce the likelihood or impact of a potential risk. Here are some common risk mitigation strategies: 1. Avoidance. 2.Transfer 3. Mitigation 4.Acceptance 5.Diversification 6. Hedging 7.Risk sharing 8. Contingency planning 9.Insurance 10.Asset allocation 11.Liability management 12.Business continuity planning These strategies can be applied to various types of risks, such as financial, operational, strategic, compliance, and reputational risks.

Strategies to mitigate risk include diversification of investments, obtaining insurance coverage, contingency planning, avoiding high-risk activities, implementing risk-reduction measures like improved safety protocols, transferring risk through contracts, monitoring for early detection, training stakeholders, ensuring legal compliance, and preparing emergency response plans. These approaches collectively aim to minimize the impact of potential risks on operations and enhance organizational resilience.

Mechanism should also be put in place by the organisation to receive feedback from customers on the performance of products. This is to ensure that the product is meeting the expectations of the consumers. The risk here is that where product fails to meet consumer expectations, the demand drops and sales is affected. Adequate feedback from consumers on the product is necessary to mitigate product risk.

Moving ahead with the ALARP system. We wind up with a heatmap that has least risky areas (these should be ignored), the most risky areas (these should be dealt forthwith via hedging or other strstegic decision) and the ALARP (as low as reasonably possible) region, for this region the organization must formulate risk mitigation plans as and when able.

Muitas vezes o combinado não é testado nem constantemente monitorado, por isso a mitigação de riscos deve ser sempre colocada à prova de falhas para que o risco não seja desconhecido novamente.

Risk mitigation presents an opportunity to strengthen our business against potential disruptions. Craft tailored strategies, such as diversifying product lines, staff training, updating technology, and fortifying cybersecurity, to proactively address identified risks. Remember, each risk requires a unique approach; analyze its specific nature to tailor the mitigation strategy effectively while considering cost-effectiveness. The overarching aim remains consistent: minimizing potential impacts on your business. Blend preventive measures with contingency plans to ensure readiness to respond should a risk materialize. Guide your organization in navigating uncertainties with resilience and agility, empowering teams to thrive amidst challenges.

Comunicar el riesgo permite la toma de decisiones por stakeholder, desde los diferentes niveles de la estructura organizativa. Esto incluye la información de los escenarios identificados, medición de los escenarios y planes de tratamiento.

Effective risk communication transcends mere transmission of information—it transforms the organizational culture. The leadership's role is not only related to identify and evaluate risks but to set the tone for the entire organization, communicating with clarity. For frontline staff, the message must be accessible and actionable. It’s not enough to know that risks exist; they must understand how their daily actions contribute to a larger strategy of risk mitigation. When they see themselves as integral parts of the whole mechanism, their vigilance and responsiveness are naturally enhanced.

Enhance your business's resilience with effective risk communication: 1. Identify Risks: Clearly define potential threats. 2. Inform Stakeholders: Keep everyone informed about risks and mitigation plans . 3. Develop a Plan: Create a clear communication strategy. 4. Regular Updates: Provide consistent updates on risk status. 5. Encourage Feedback: Foster an open dialogue for continuous improvement.

Everyone, from top to bottom, should participate in risk management. Every adverse event must be reported promptly, and timely communication is crucial.

Utilize Risk Assessment Tools: 1- SWOT Analysis: Identify strengths, weaknesses, opportunities, and threats related to the business. 2- PEST Analysis: Examine external factors (Political, Economic, Social, Technological) that could affect your business.

Particularmente gosto de um processo de gestão de riscos com periodicidades definidas para a revisão das matrizes. Uma boa época seria a revisão próxima dos comitês de riscos, para que os membros trabalhem e decidam com informações o mais atuais possíveis. É importante que um mecanismos de monitoramento de ameaças externas também esteja funcionando. Parceiros externos podem ajudar muito.

Enhance your business resilience with effective risk monitoring: 1.Establish Metrics: Define key indicators to track risks. 2.Use Technology: Implement tools for real-time monitoring. 3.Regular Reviews: Conduct frequent assessments of risk status. 4.Adjust Strategies: Update mitigation plans based on new data. 5.Report Findings: Communicate insights to stakeholders promptly.

Once the Risk "red flags" are identified, a system can be put in place to monitor, track and then strengthen your existing preventative system by also identifying weak spots within your own organization. Be knowledgeable, reach out into the industry your organization is a part of in order to see what others are doing, including any other forms of risk they have encountered, and grow your monitoring and mitigation system. Be proactive and become a leader in your industry!

Continuous monitoring of risks is essential for effective practice management. Here's how to stay ahead: 1. **Regular Risk Checks:** Frequently assess for new risks and review existing ones. 2. **Dynamic Metrics:** Use real-time data to track risks and adjust strategies. 3. **Automated Tools:** Implement tools that provide alerts on risk changes. 4. **Stakeholder Input:** Regularly involve stakeholders for diverse risk insights. 5. **Team Training:** Ensure your team is aware and trained in risk management. 6. **Flexible Strategies:** Be ready to adapt your risk management approach as needed. By following these steps, you can quickly identify and respond to risks, keeping your practice resilient and agile.

Effectively maintaing risk documents can comprise of day-to-day reports, risk assessment reports, incident reports, fraud reports etc. These documents are now maintained in the revolutionary era of AI and ML where all the report data can be reviewed, updated on regular intervals to maintain accuracy and evaluate relevance in risk assessment. Still in this revolutionary era, manual intervention is absolutely necessary to review as it gives a personal touch (identifying mindset in risk, fraud).

All the risk documentation should be exist in your organization SOP and policy. This will be the simplest way to describe the whole of your organization journey and appetite in risk management activities together in one.

Think the unthinkable … don’t debate how possible a scenario is, just run with it and assess the impact. Think beyond your own field of expertise (e.g Credit Risk) and consider what else could go wrong (such as overloading markets infrastructure).

Uma coisa que acho útil na avaliação de risco de um negócio é considerar vários fatores cruciais. Primeiro, a identificação de riscos é fundamental para saber quais ameaças podem afetar a empresa. Em seguida, a análise de impacto ajuda a entender como esses riscos podem afetar financeiramente, operacionalmente e em termos de reputação. Avaliar a probabilidade de ocorrência de cada risco é igualmente importante. Além disso, é vital verificar os controles existentes para ver se já há medidas eficazes em vigor. Estabelecer planos de contingência claros garante uma resposta rápida a incidentes. A compliance e regulação também deve ser considerada para garantir conformidade legal.

The one aspect that is often neglected in the organizations risk management effort is the human element of risk management (behavioral-risk management). The organization can adopt the very best risk management frameworks, methodologies, tools and practices but often the success of risk management is highly dependent on human behavior toward risk management. The issue of organization culture, perception, attitude for example, can build or break risk management efforts. It is therefore important for organizations to focus on both the technical and soft aspects of risk management. Often, it is the soft issues that fails the risk management process.

When risk occurs, don’t blame or pointing finger on anyone. Sometimes, it’s not always about someone’s inadvertence, but please take the responsibility and learned something. As lessons that come easily are not learnt at all, They are only gracious of luck.