| Companies and other types of organizations face a | | | | profit and make earnings more predictable and |
| wide range of costly hidden and unanticipated risks. A | | | | consistent. A few of the many risks that can be |
| highly effective way to create or strengthen a risk | | | | identified, assessed and managed using Business Risk |
| management process is to conduct comprehensive | | | | Surveys include: |
| risk assessment surveys that identify and assess | | | | · Risk of costly legal suits from employees, |
| risks across the organization. This article describes risk | | | | customers and competitors · Reputational · |
| surveys and how they can benefit your organization. | | | | Competitor · Accounting · Investment · Economy |
| Business Risk Assessment Surveys Strengthen Your | | | | · Customer (risk of losing customers, dependence |
| Risk Management Process | | | | on key customers) · Insurance (too much or too |
| Running a company is a risky proposition. Too much | | | | little insurance) · Accident · Business decision · |
| risk can be very costly, particularly when things go | | | | Risk of employee turnover · Hiring · Product risk / |
| wrong. Too little risk can also be very costly, | | | | service portfolio · Innovation / product development |
| especially when smart risks are being avoided or too | | | | · Risk of lost business due to product and service |
| much money is being spent to limit risks. | | | | problems · Business interruption / continuity · |
| Significant risks are often hidden or ignored by | | | | Capacity utilization / availability |
| organizations. The best way to identify and assess | | | | · Inventory · Regulatory and legal compliance · |
| these hidden and ignored risks is to survey managers | | | | Fraud and theft · Environmental /weather risk · |
| and staff professionals at all levels of the | | | | Health and safety · Supplier · Outsourcing · |
| organization. Business Risk Assessment Surveys | | | | Technology · Information · Bias, diversity and |
| collect risk information and insight from managers and | | | | abuse · Management and key employee succession |
| other key employees and consolidate it by business | | | | · Fiduciary · Facilities |
| unit and your organization overall. | | | | Benefits of Business Risk Assessment Surveys |
| Companies need a clearer understanding of the risks | | | | Business risk surveys generate significant bottom-line |
| they are taking to protect the physical, financial, | | | | benefits and a very strong payback including: |
| human and intellectual assets of their companies. The | | | | · Reducing business risk uncertainty |
| main goal is not to eliminate uncertainty. Instead, it is | | | | · Protecting shareholders, customers, management, |
| to be proactive in assessing and managing risk for | | | | employees, board members and the community from |
| your company's advantage. | | | | costly, embarrassing problems and catastrophic |
| Risk assessment surveys are a critical tool for any | | | | events that may threaten profit, reputation and |
| successful risk management process. It is all about | | | | survival |
| identifying, assessing and managing a wide range of | | | | · Raising awareness of business risks across the |
| risks at acceptable levels. | | | | organization |
| What risks does your organization face? How do you | | | | · Measuring the importance and likelihood of each |
| know? | | | | risk criteria in each business unit and across the |
| Who is responsible for risk management in your | | | | organization, and tracking risk trends |
| organization? Does that person/department have the | | | | · Reducing costs |
| tools and resources to identify and assess risks | | | | · Increasing revenue through smart risk-taking |
| effectively? Does your organization have a | | | | · Risk survey comments and suggestions identify |
| comprehensive list of risks that is updated annually? | | | | actions for achieving breakthrough improvements |
| The risk problems facing many organizations today | | | | · Identifying hidden risks and possible solutions |
| · Many complex and broad risks threatening your | | | | · Creating a roadmap for making breakthrough |
| business | | | | improvements in risk levels |
| · Lack of tools and processes to identify and assess | | | | · Focusing managers' energies on the highest |
| risk importance and likelihood | | | | payback risk management opportunities |
| · Failure to identify and act on risks until it is too late | | | | · Managing risk more effectively |
| · Overspending to avoid risks | | | | · Strengthening the culture of risk management |
| · Missed opportunities and profit due to excessive | | | | collaboration and change |
| risk avoidance | | | | · Facilitating smart risk-taking |
| · Financial losses and reputational impact due to risk | | | | Other types of Risk Surveys |
| failure | | | | In addition to comprehensive Risk Surveys that |
| The solution for identifying and assessing risks | | | | identify and assess a wide range of risks across the |
| ·Risk Assessment Surveys provide the solutions you | | | | organization, risk surveys that focus in detail on |
| need for assessing and managing risk at appropriate | | | | specific risk issues are an excellent way for |
| levels | | | | organizations to identify and assess specific risks in |
| · Risk Surveys gather information and insight from | | | | considerable detail. Examples of detailed risk surveys |
| managers and decision makers across your company | | | | include Contract Risk Assessment Surveys, State |
| · Connect the dots to understand where to focus | | | | Regulation Risk Surveys, Ethics and Compliance Risk |
| risk initiatives | | | | Culture Surveys and Sarbanes-Oxley 404 Surveys. |
| · Hone in on your organization's specific risk | | | | Each of these surveys include many questions about |
| assessment needs | | | | these respective risks. Detailed risk surveys can also |
| · Collect suggestions for identifying and managing | | | | be conducted for each of the types of risks listed in |
| risk | | | | this article. |
| ·Business Risk Surveys typically include 30 — | | | | Summary message for CEO’s, COO’s, |
| 70 questions that are included in the following risk | | | | CFO’s, Risk Managers, Internal Auditors, |
| categories: | | | | General Counsels and others responsible for Risk |
| 1. External Risks | | | | Management |
| 2. Operational Risks | | | | Risk surveys are a highly cost-effective way to |
| 3. Financial Risks | | | | protect your organization from unanticipated and |
| 4. Sales, Marketing and Products/Services Risks | | | | hidden risks, and to avoid significant costs and |
| 5. Human Resources and Organizational Effectiveness | | | | threats to your organization’s reputation due |
| Risks | | | | to risk incidents. The surveys provide loads of |
| 6. Management Risks | | | | actionable information that can be used to identify |
| Business Risk Assessment Survey Metrics | | | | and assess risk importance and likelihood, and for |
| Identifying and assessing risks and then managing the | | | | creating and monitoring execution of risk |
| risks at appropriate levels can significantly increase | | | | management action plans. |