Strategic Thought

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 Benefits of Risk Management

Risk management has evolved from being an isolated intuitive process into an integrated enterprise wide discipline where it is required to manage all types of risk and disclosure.

The benefits of an integrated enterprise or organisation-wide approach are:

• The ability to deliver improved performance
• The improved probability of the achievement of objectives
• Demonstrable enhanced stakeholder value

The  internationally recognised risk management approach today is "identify, assess, mitigate, re-assess and establish fallback”. This encourages the assignment of risks to individuals and the personal ownership and management of a risk with its specific consequences and mitigations. The benefit of involving all individuals within an organisation into risk process is that teamwork (and therefore effectiveness) is improved as well as the overall quantity and quality of operational information being passed up the organisation to the management and executive layers. In short, better decisions can be made at the executive level.

The benefit of using software in the delivery of a risk management process is to establish a transparent and uniform process at all levels of an organisation to manage risk, opportunity and compliance objectives.It can be applied to an extensive range of applications including business, governance, project and portfolio for strategic, operational, compliance and business continuity programmes.

The potential gains available from an effective risk management process depend very much on the organisation that is implementing the process. One business will look to solve very different issues from another (for more on this go to the next section where there is information on some of the different benefits that our own customers sought from the implementation of a risk management software system).

A sample of the benefits that you might expect to get from the deployment of a risk management process include:

• supporting strategic and business planning
• supporting effective use of resources
• promoting continuous improvement
• fewer shocks and unwelcome surprises
• quick grasp of new opportunities
• enhancing communication
• reassuring stakeholders
  
• helping focus an internal audit programme