By adopting smart and functional practices to face strategic risks, leaders can better position their organizations by being proactive and moving forward simultaneously with today's dynamic environment, thus projecting their organization toward future growth.Even though in recent years many organizations dedicate enormous resources to risk management, most leadership teams still lack a clear perspective of the risks existing in their organizations and reliable ways of how to detect, prevent and address them. Consequently, fewer organizations can anticipate these risks as they do not have reliable data to allocate their resources in a way that seizes risk as a strategic opportunity to improve key value drivers, while at the same time neutralizing the risks. forces that can undermine these factors
Risks today are more dynamic, pervasive, interactive, and potentially more devastating than ever, potentially destroying value built over decades in a matter of days.
While each organization faces similar risks that vary from industry to industry, albeit in different scales and ways, these challenges call for a shift in the traditional management approach, from managing risk as a corporate function to managing risk as a corporate function. A discipline that is integrated throughout the company and is considered a strategic asset, since traditional risk management is not equipped to address those risks that often evolve, presenting threats that have not been presented or detected before.
Certainly, in recent years, there has been a greater awareness of risks and the urgency of effectively detecting, preventing, and managing them, inducing managers in organizations to assume greater responsibility for risk management and seek strategic ways to balance those risks with the opportunity. They realize that risk is no longer an annual look at the internal audit report and that strategic risk management can help their organizations take advantage of opportunities in a balanced way while at the same time generating greater value and competitive advantage.
However, traditional business risk management is not equal to the demands of the disruptive and dynamic environment, as today there is a need for an approach that considers business risk management not only as loss prevention but to create value and encourages organizations to be “risk smart” while the same risks evolve.
How can organizations improve their internal risk management?
One of the first steps is to create awareness in managers and members of companies and make internal risk part of a recurring agenda. Organizations must stop being reactive to problems and losses when a risk event occurs and try to be better prepared. Starting with corporate strategy and making risk management awareness a part of that.
For the development of risk management, it is necessary to have models and tools appropriate to their contexts but that at the same time facilitate the measurement or values of the level of risk that facilitate the identification, interpretation of results and risk analysis and that depending on this level of importance, preventive actions, damage mitigation, and respective treatment are determined according to the declared importance.
Being proactive in risk management gives the organization greater opportunities to grow, increase profitability, gain confidence and project the organization towards future growth.
Addressing the ecosystem of risks is becoming broader and without a doubt, it turns out to be a challenge. But it can be achieved by developing a clear vision for risk management and taking practical steps to make that vision into reality.
Technology as an ally in today's disruptive environment can make it easier for organizations to monitor numerous variables in real-time.
The "risk-smart" company looks for the opportunities that risk presents while protecting existing assets. Creates strategic flexibility while maintaining operational discipline. Increases senior executives’ confidence in their decisions while assuring the board that risks have been addressed. Plus, they discover new opportunities to create stakeholder value, drive performance, and grow their businesses. "For most organizations, this represents a departure from the way risk was managed in the past."
Our system RISK-HR helps organizations to obtain huge amounts of indicators that will facilitate the analysis and monitoring process, allowing companies to have a structure that not only identifies in short and long periods or part-time, different emerging and/or known levels of risks but also generates early alerts and allows correlating results over time, giving a clearer vision of where to look, which, complemented interactively with analysis or human judgment, organizations will be able to monitor changes, patterns over time and distill them into information that can lead to action.
Some of our capabilities:
Provides actionable risk indicators to the people who need it, when they need it, on a single platform and for periods to make and implement decisions.
Detect different risks in the early stages.
See critical factors and or events that may affect the value of the organization.
Interactive platform for risk management by stages and states.
Correlation of indicators and alerts over time.
Detection of emerging and/or known risks (any new risk that is increasing) in more than 45 topics.
An integrated system that links the risk strategy with the corporate strategy.
Promote a more nuanced view of risk.
Monitoring the entire business ecosystem for emerging threats.
A scalable system capable of handling large volumes of data.
Alerts according to urgency level.
Unique with prevention capabilities.
Non-intrusive, non-invasive, and non-violent.
An immediate return on investment.
Getting a bird's-eye view of different types of risk - an integrated and ecosystem-wide risk perspective - can help leaders better understand the full picture of risk and its potential impact on the organization.
To incorporate risk management strategies, it is necessary to establish a strong risk-conscious culture that starts from the company's guidelines and takes responsibility for that risk standard.
The proper functioning and growth of an organization and its employees depend on how healthy the organization itself is, generating fewer losses in economic, human, operational, and reputational capital.
In this way, we can have better employees, more money on the balance sheets, a better reputation, and above all, control of where we want to go as an organization with a clear look to the future.
If you want to know more about what we do, contact us through our communication channels:
Through our online platform: https://en.logicalcommander.com/contact-us
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