5 Strategies to Boost Your Risk Assessment
5 Strategies to Boost Your Risk Assessment
Digital risk management is the next step in enterprise risk and security for organizations that increasingly rely on digital processes to run their businesses. Digital risk has a long-term effect on the initiatives, decisions, and actions of an organization. Therefore, organizations that mostly rely on digital processes to run their business should have a clear vision of security and digital risk management. If you fail to manage digital security, it is likely to sabotage your revenue. Digital risk management is a critical process as it impacts the performance of your business. It begins with identifying the potential risks, analyzing them, and finally controlling them. However, this critical task has been made easy by the modern-day technology that allows every business to create a structured and sustainable risk management program. Today, it is easy, but it requires a bit of vigilance since “what means apples today may turn to be oranges tomorrow. To make it simple for you, here are a few simple steps to help you create a sustainable digital risk management program:
Today, security has become a wider-level issue. Online merchants are facing huge losses with the rapidly growing risks and frauds that need to be evaluated constantly. So, for businesses that need to deal with big data, threats mainly arise due to the improper and unstructured way of handling sensitive and personal data of customers. Ensuring data protection and encryption is the key here. This is the very first and basic step to follow in sustainable digital risk management.
Adoption of new technologies has been benefiting all businesses today. Machine learning and artificial intelligence are smart innovations of the modern age that will become a crucial part of security solutions in the days to come. Businesses need to take complete advantage of both the technologies to manage fraud detection, security, and other regulatory compliance functions. Therefore, employing these technologies to discover loopholes forms a very important step for sustainable digital risk management.
Any digital risk management program begins with the identification of key vulnerabilities and risks across all business functions. Risk identification helps you mitigate such risks. Business leaders along with the members of the organization should make informed decisions and choices through a structured risk assessment and identification program that supports flexibility, resilience, and accountability across different business functions.
The latest and the most trustable crypto technology of blockchain has the potential to obstruct both internal and external threats. Today, several sectors like banks and other financial organizations have adopted this technology. This technology promises to deliver incredible digital risk management possibilities in the supply chain, healthcare, banks, insurance, and other areas that deal with huge data and currency transactions.
Are you someone who would buy a poster that says, “Risk Happens”? If you’ve answered yes and you believe that life is in no way certain, then you’re definitely a project manager. Risk is a part and parcel of any business venture. In any business scenario, the risk management process encompasses steps such as evaluating, identifying, and prioritizing issues on the basis of their economic impact.
While executing a project, you will definitely face a number of risks and issues. But how do you manage something that’s as elusive as project risk management in today’s dynamic market space? The answer is simple, you must establish an effective risk management process. Setting up processes can make the unmanageable manageable, and if you want to take what looks like a disadvantage and turn it to an advantage, follow our five-step guide to establishing a good risk management process:
Recognizing circumstances where risks arise is a critical aspect of every risk management process. Understanding the relationship between your business and the environment in which the risk exists will help you judge the boundary to which the risk exists.
Risk identification is another key step in every risk management process. It involves the identification and analysis of specific risks associated with certain hazards. However, risk identification doesn’t imply a situation where you or the management will have to factor in distant possibilities. Every form of risk can be categorized into the following: ethical, financial, legal, and physical. All of these can play a critical role in influencing your business outcomes and brand reputation.
This step of the risk management process involves building an understanding of the risks that have been identified and subsequently determining how dangerous that particular risk is and its likelihood. This risk management process takes into account two factors, such as likelihood and severity, and involves the process of evaluating the probability of occurrence and the subsequent impact of each risk factor. The priority can be estimated by combining the effect of probability and consequences.
Once all the steps given above have been completed, the next step in your risk management process would be to control these risks. For instance, in a workshop, if an employee is working under a machine that may fall at any moment on top of him, the process of risk control or regulation would first involve moving the worker to a safer location and then fixing the machine so that it doesn’t harm anyone. The steps involved in risk regulation or control are as follows: eliminating hazards, substituting hazards, isolating hazards, and restricting control.
Risk monitoring and evaluation is the final step in every risk management process. It involves developing an understanding of the impact of the control mechanisms that were developed for the hazard and the risk it poses. If the hazard or issue doesn’t pose the same challenge which was intended to be controlled, then the risk management strategy will be evaluated as successful. This step is critical for ensuring that no mistakes were made and the risk doesn’t spiral out of control.
The client, one of the world’s renowned auto parts manufacturers, wanted to evaluate the relative risk in each industry and identify the growth opportunities to improve their business performance. The auto parts manufacturer wanted to gain deep-dive insights into the severity of risks based on small, medium, and large businesses. The primary objective of the client was to incorporate an entity-level industry risk assessment solution to ensure better transparency in the business processes.
The risk assessment experts at Infiniti carried out an extensive research, comprising interviews and discussions with prominent stakeholders in the auto parts manufacturing market. The experts also compiled information from reliable sources such as trade shows, paid industry databases, and company presentations to identify the impact of market challenges in the auto parts manufacturers space.
Interested to know more about the Infiniti’s risk assessment solution, request a free proposal now!
The risk assessment solution offered by Infiniti assisted the auto parts manufacturer in analyzing the trends in the industry and improving their profit margins. The engagement also helped the auto parts manufacturer to assess each factor in terms of the level of risk, including intermediate and moderate risk. Moreover, the auto parts manufacturing client was able to identify risks in the supplier base and develop a temporary monitor system to monitor these risks frequently. With the help of Infiniti’s risk assessment solution, the auto parts manufacturer was able to control risks and gain early warning signals to address the potential problems in the supply chain.
Globally, the chemical industry employs approximately more than 10 million people and enables indirect employment for over 50 million people.
The global chemical industry is highly reliant on new technologies to gain a competitive advantage and improve their cost margins. Moreover, with the growing demand for chemical engineering among the end-user segments, prominent businesses are planning to invest heavily in research and development. Also, leading organizations are planning to refine their existing architecture to improve their production capabilities and reach out to the target audience in an agile and seamless manner. The growth of the chemical engineering space can be attributed to factors such as the extensive use of the application in the fields such as climate change and environmental systems.
Here are some of the factors that may curtail the growth of the chemical engineering space:
To counter such challenges, businesses are utilizing risk assessment solutions. Industry risk assessment solution helps businesses identify the potential risks in the industry and devise effective strategies to improve the business decisions.
The client, a renowned chemical engineering equipment manufacturer, wanted to understand the current market performance and identify hazards to devise an effective risk management plan. With the help of Infiniti’s risk assessment solution, the client wanted to understand the risks in the industry and identify the potential opportunities to enhance their position in the chemical engineering market space.
To identify and assess the risks based on priorities, the risk assessment experts at Infiniti followed an extensive research methodology comprising interviews and discussions with leading stakeholders in the chemical engineering equipment space. Additionally, to devise a robust risk management plan, the experts also compiled information from reliable sources such as trade shows, paid industry databases, and company presentations.
The risk assessment solution offered by Infiniti assisted the chemical engineering client in evaluating risks to enter the most profitable region. The client was able to gain deep dive insights into the preferences of the customers and accurately position their products to meet the business requirements. The engagement also helped the chemical engineering client develop alternative risk assessment plans to curtail any disruptions and improve product performance.
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the chemicals industry.