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How to Increase the Efficiency of Your Risk and Compliance Management Strategy By 50%

The proliferation of new business processes and the changing government rules and regulations around the globe are posing challenges for small and big companies alike. However, many companies still rely on an old-school approach when it comes to risk and compliance management. Business risks today are highly volatile and rapidly changing. Consequently, the compliance and risk management approaches of every company should continuously evolve to survive these dynamic changes. Experts at Infiniti Research believe that shifting focus on the alignment of functional processes and creating a symbiotic relationship between them can play a major role in enhancing the risk and compliance management of companies. Here are some proven strategies that can be adopted to improve the existing risk and compliance of companies.

At Infiniti, we help clients to gain a comprehensive view of the gaps in their risk and compliance management by setting benchmarks and analyzing their existing processes. RFP to get in touch with our experts for more insights.

How to improve risk and compliance management

risk and complianceUse a unique compliance and risk strategy

By adopting a unique risk and compliance management strategy, companies may anticipate future industry trends across business, products, processes, services, and geographies. This will help the organization gain a competitive advantage through well-planned compliance management programs.

Right combination of tools and technology

The risk and compliance process of companies can be made more efficient by identifying and adopting the right combination of technology and best practices. With the amount of advanced tools and technology today, this would be a rather easy task. Using a tool that can extract data from the system and then provide comprehensive insights on deviations from the desired risk and compliance policy will prove to be useful.

Collaboration and functional integration

Risk and compliance should be integrated into an enterprise-wide risk management process. This helps ensure that any issues faced by the organization relating to risk and compliance are not considered in isolation. It must include all activities related to risk and compliance management, and it should provide a framework that can be leveraged to assess an organization’s exposure to risk. This gives organizations a better opportunity to make timely and well-informed decisions.

If you’d like to know how Infiniti’s solutions can help overcome your business challenges, get in touch with our experts.

Enhance corporate governance

Compliance and risk management is closely linked to corporate governance. Effective corporate governance sets the tone for understanding risks and risk management capabilities and aligns the risk appetite with the organization’s opportunity-seeking behavior. Furthermore, elevating risk management to a strategic level strengthens board oversight, clarifies risk management roles and responsibilities, sets risk management authorities and boundaries, and ensure effective communication of risk responses in support of key business objectives.

Training initiatives

Not just the employees, even managers in some of the top companies around the globe still are completely unprepared to address risk and compliance related issues. Considering the fact that compliance is one of the greatest risks your organization faces, appropriate training should be at the top of any company’s risk management plan. Moreover, having well-defined processes as well as documented policies, procedure and guidelines help ensure better risk and compliance management throughout an organization.

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Operational risk analysis

Infiniti’s Risk Management Strategies Helped a Manufacturing Firm to Reduce Time from Warehouse to Customers by 60%

The European manufacturing industry has evolved greatly over the past few years, and technology continues to be a major catalyst for change. This quick pace of technological progress poses significant challenges for companies operating in the manufacturing industry. Supply chain disruptions, risks from third-party vendors, workforce management challenges, and security risks are some of the major business risks in the manufacturing industry. Of all these challenges, supply chain disruptions present the biggest challenge for manufacturing firms.

Supply chain disruptions, if not managed properly, can result in potential adverse impacts on the manufacturers’ sales and brand reputation. Therefore, manufacturers should build resilience into their supply chains to address critical supply chain vulnerabilities proactively. Risk management strategies enable manufacturers to reduce uncertainty and strengthen relationships with their prospects by ensuring timely delivery of goods.

Business risks in your organization must be continually monitored and addressed before they affect the profits margins. Request a FREE brochure and gain more insights into our services portfolio and to know how our risk management strategies will help you effectively address all the risks associated with the organization.

Business Challenge

The client is a manufacturing firm based out of Central Europe. The client faced major challenges due to progressing supply chain disruptions caused due to inventory issues, incorrect demand-supply forecast, and transportation delays. With this, the client was not able to deliver products on time and on demand. Moreover, without a strategic approach to their global supply chain management and inventory plans, they encountered costly business risks from product overstocks and stock-outs. This eventually affected their customer experience. The company was also unable to meet their annual sales target.

Therefore, by leveraging Infiniti’s risk management strategies, they wanted to address all the business risks in the organization. Also, with Infiniti’s risk management strategies, they needed to keep their inventory controlled and shipments moving in a timely manner by reducing supply chain complexities. Moreover, with Infiniti’s risk management strategies, the client was looking to profitably satisfy market demand by dynamically optimizing production and manufacturing plans, reducing distribution costs, and slashing lead times (the time between the initiation and completion of a production process).

Other key objectives they were looking to achieve with risk management strategies were:

  • Managing supply chain disruptions
  • Gaining better control over inventory
  • Improving visibility into the supply chain

Solutions Offered

The experts at Infiniti Research identified the business risks associated with the client. They also analysed the structure of the supply chain to render customized solutions to the client. They also analyzed the major competitors of the client in the European manufacturing market and determined risks associated with these companies.

Also, a risk management plan was adopted to transform processes associated with the supply chain. It involved discovering supply chain disruption, recovering that disruption, and redesigning of the supply chain. Our experts, with the help of risk management strategies, identified the types of business risk present in the supply chain of the company and helped the client to predict when the events or disruptions were about to occur. Infiniti’s risk management strategies helped the client to create strategic business plans that can prevent supply chain breakdowns from impacting the operational efficiency of the organization.

Results and Key Findings

With Infiniti’s risk management strategies, the client was able to identify all the risks associated with their inventory management process and suppliers. This helped the firm to successfully onboard new suppliers, manage compliance with regulations, and control requirements through multiple supply-chain tiers. Infiniti’s risk management strategies also helped the client to gain a thorough knowledge of all the parties involved in the production, storage, and distribution process. This subsequently helped them identify the major risks associated with these processes and revolutionize their logistics management system.

By addressing all the major risks with Infiniti’s risk management strategies, the client was able to improve transportation and inventory planning, increase transportation management efficiency, and track just-in-time delivery metrics by analyzing shipping schedules. The risk management strategies further helped the client to reduce distribution cost and cut down the lead time. With this, the company was able to reduce delivery time from the warehouse to customers by 60%. Also, the client was able to meet their quarterly targets, which subsequently enhanced the company’s sales rate by 47% in a year.

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Is your business prepared to tackle all the business risks affecting your organization? If not, request a FREE proposal to know how our risk management strategies can help you reduce risks associated with business operations.

What are risk management strategies?

Risk management strategies are used to evaluate the risks involved in an organization, occurring due to changes in business operations, systems, and processes. It facilitates an organization in making informed decisions. As risks are inherent to every business, they must be tackled effectively to minimize their impact on an organization. Strategic risks, compliance risk, financial risks, and operational risks come under business risks. Risk management strategies help companies prioritize and address the main risks affecting an organization by keeping a constant track of them.

Business Risks in the Manufacturing Industry

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