Applying good risk management practices

 

·         Identify

·         Prioritize

·         Mitigate

·         Report

 

After identifying and analyzing the risks for your business, it is important to prioritize the risks. After preparing a mitigation or action plan to lessen the risks or grow the opportunities, it is important to have a vigorous reporting process to track, measure, and assess the progress of the risk plan. Risks are rarely static. They are ever changing. Old risks expire, new risks arise, and others get bigger, smaller, more frequent, or less severe in their consequences. Thus, the risk plan must be monitored and adjusted as the risk conditions change.

 

In our experience when the action items from the risk plan are incorporated into a business’s strategy and integrated into the business’s operating procedures, the company also becomes stronger as a whole and better prepared for future growth. As risk permeates all aspects of our businesses, developing a good risk management plan is similar to developing a good business improvement plan.