| Today, we see a number of risks
| |
| | extremely costly mistake, sometimes
|
| associated with businesses of all sizes,
| |
| | upwards of $10,000 or more. In this
|
| ranging from identity theft,
| |
| | instance, there would be a number of
|
| embezzlement, natural disasters, personal
| |
| | things to consider. Is the individual
|
| injury, fraud, vendor failure, taxes,
| |
| | heading up the tax department qualified?
|
| finances, and more. Because of the
| |
| | What type of tracking system is being
|
| increasing number and type of business
| |
| | used? Is the department short-handed? Is
|
| risks, companies have had to make some
| |
| | the person in the mailroom delivering
|
| major adjustments in overall operations,
| |
| | mail on time? These and other
|
| management, and strategy. When you couple
| |
| | possibilities exist, which is where a
|
| risks with competition, you can see that
| |
| | risk management team would help. Once the
|
| it is imperative every company have a
| |
| | problem area or potential risk is
|
| solid plan in place for protection and
| |
| | isolated, then changes could be made
|
| success.
| |
| | accordingly.
|
| One of the most important aspects of
| |
| | Another factor that unfortunately, is
|
| strategy is ensuring a solid risk
| |
| | sometimes overlooked is the client.
|
| management team is in place. These
| |
| | Obviously, if you are going to run a
|
| individuals would hold the responsibility
| |
| | profitable business, you need satisfied
|
| of not just identifying potential risk
| |
| | customers. Perhaps there are areas of
|
| but also creating and implementing sound
| |
| | service or product where customers are
|
| processes, techniques, or technologies
| |
| | not happy but because no means of
|
| for prevention and/or correction. The
| |
| | communication or input is in place, you
|
| risk management team however will not
| |
| | have no idea. Therefore, you might think
|
| work in isolation but in tandem with
| |
| | about sending out customer surveys,
|
| other key stakeholders, such as
| |
| | trying to find any weaknesses that need
|
| department heads and the Executive team.
| |
| | to be strengthened. It is imperative that
|
| Having a winning risk strategy is going
| |
| | you know your customers and that those
|
| to give your business the foundation on
| |
| | customers are so satisfied with what you
|
| which to build a strong, competitive
| |
| | offer so they will not look elsewhere.
|
| company but also a business that
| |
| | Things happen in businesses and sadly,
|
| employees and clients trust.
| |
| | many great companies have gone under
|
| What is the key to creating such a risk
| |
| | because of lack of risk management and/or
|
| strategy? For one thing, you want to be
| |
| | strategy. Enron, is only one of many
|
| productive but not make quick decisions.
| |
| | examples in which a failure to manage
|
| Unfortunately, we have seen many larger
| |
| | risk or even identify risk ruined a
|
| corporations that have put "quick fixes"
| |
| | company. Another often cited example is
|
| into place, only to find they end up with
| |
| | Barings Bank which was one of the most
|
| a laundry list of new problems. Yes, it
| |
| | respected merchant banks in the United
|
| is essential that a good plan be
| |
| | Kingdom. The company which held $900
|
| developed as quickly as possible but make
| |
| | million in capital was bankrupted due the
|
| sure the plans being considered are not
| |
| | actions of one trader. The losses and
|
| just short term fixes but will be
| |
| | subsequent bankruptcy could have been
|
| beneficial long-term. While a risk
| |
| | avoided if internal controls had been in
|
| management team can identify potential
| |
| | place. There are countless other global
|
| risk events, the team must work in
| |
| | examples of the consequences of not
|
| conjunction with the organization so that
| |
| | identifying risk events.
|
| strategies are aligned with the business
| |
| | While federal regulations such as
|
| goals. In essence, the best risk strategy
| |
| | Sarbanes-Oxley have mandated corporate
|
| is one component of the overall business
| |
| | governance and controls, managing risk is
|
| strategy.
| |
| | simply good business. Identifying risk
|
| In addition, you need to review your
| |
| | events and formulating response
|
| company inside and out, top to bottom, to
| |
| | strategies enable the organization to
|
| determine where risks lie. For example,
| |
| | successfully execute its objectives.
|
| missing payment on taxes can be an
| |
| |
|
