Tag: Risk Management

risk-management-newjpg

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.

Learn more about Infiniti’s solutions for business

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.

Capture

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

CONTACT US to learn more about our risk management strategies and their benefits for your business.

Market Intelligence

5 Steps to Sustainable Digital Risk Management

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:

Steps to Sustainable Digital Risk ManagGet More Infoement

Step#1: Follow a structured program that can assist dynamism

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.

Step#2: Discover loopholes with machine learning and AI

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.

banner IR

Step#3: Identify and analyze major challenges

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.

Step#4: Recognize new possibilities with blockchain

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 looking for ways to mitigate risks? Do you think beyond traditional risk and security issues? Get in touch with us now to know how our digital risk management solutions can help you protect your sensitive data

Contact US

IT services industry

4 Reasons Why You Should Improve Operational Risk Management in Manufacturing

Basically, risks are of different types and many of them are braided together like reputational risks, financial risks, operational risks, third-party or supply chain risks, legal or compliance risks, and several others. Operational risks, generally, are viewed through the lens of safety management in an organization but for manufacturers, it is important to see the link between safety and operational risk management. The rationale for improving the operational risk management process is not only limited to safety but goes beyond it. There are many compelling tested and verified reasons to improve operational risk management in the manufacturing sector.

In this article, we have discussed a few of those reasons that establish the fact that it is highly essential to improve operational risk managemContact USent process to improve productivity and growth of an organization.

Reasons to improve operational risk management process

Reason 1: Attain financial goals

There are many manufacturers who see the relationship between enhancing productivity and mitigating operational risks. But for better operational risk management, it is essential to move one step further and also see the relation in terms of financial performance. It is important to minimize the impact of operational risks on financial goals. Additionally, manufacturing companies must align operational data with financial data to analyze the financial impact of adverse events.

Reason 2: Improve and increase collaboration

If the financial goals are achieved, it has hard and quantifiable benefits. But implementing an operational risk management process also fetches soft benefits like improved cooperation and collaboration. This can furthermore help in the joint management of risks. The implementation of an operational risk management framework provides the catalyst as well as an incentive for organizations to also boost cross-functional collaboration.Request Proposal

Request a FREE proposal to know how our solutions will help your business.

Reason 3:  Standardize risk assessment

Manufacturing organizations, globally, understand that if they successfully mitigate operational risks, it improves the likelihood that corporate goals will be met. To mitigate operational risks successfully, the same procedures, policies, and risk management process must be applied across all the verticals of the company. Best-in-class manufacturers have standardized risk quantification processes across the enterprise.

Reason 4:  Build a risk awareness culture

To manage operational risks, it is very important to build a culture of risk awareness. This culture helps manufacturers to establish better visibility into control measures of operational risks. This can further help them to integrate a risk mindset, which further minimizes operational risks and their impact on financial and corporate objectives.

To know more about operational risk management, request more info.

Get More Info

IT services industry

5-step Guide to a Successful Risk Management Process

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.Get more info

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:


#Step 1: Analyze the situation

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.


#Step 2: Identify the risks

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.


#Step 3: Evaluate or assess risks

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.


#Step 4: Regulate or control risks

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.


#Step 5: Monitor and evaluate risks

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.


To know more about risk management process and the best risk mitigation strategies