Risk Management

A RISK = A undesirable outcome The general definition of a Risk assessment is “Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat (also called hazard). Quantitative risk assessment requires calculations of two components of risk (R): the magnitude of the potential loss (L), and the probability (p) that the loss will occur” – Wikipedia The KEY to Risk assessments is to be able to measure ENTERPRISE RISK.

Enterprise risk management (ERM) in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization’s objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.

ERM can also be described as a risk-based approach to managing an enterprise, integrating concepts of internal control, the Sarbanes–Oxley Act, and strategic planning. ERM is evolving to address the needs of various stakeholders, who want to understand the broad spectrum of risks facing complex organizations to ensure they are appropriately managed. Regulators and debt rating agencies have increased their scrutiny on the risk management processes of companies.

The underlying premise of enterprise risk management is that every entity exists to provide value for its stakeholders. All entities face uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. Enterprise risk management encompasses:

• Aligning risk appetite and strategy – Management considers the entity’s risk appetite in evaluating strategic alternatives, setting related objectives, and developing mechanisms to manage related risks.

• Enhancing risk response decisions – Enterprise risk management provides the rigor to identify and select among alternative risk responses – risk avoidance, reduction, sharing, and acceptance.

• Reducing operational surprises and losses – Entities gain enhanced capability to identify potential events and establish responses, reducing surprises and associated costs or losses.

• Identifying and managing multiple and cross-enterprise risks – Every enterprise faces a myriad of risks affecting different parts of the organization, and enterprise risk management facilitates effective response to the interrelated impacts, and integrated responses to multiple risks.

• Seizing opportunities – By considering a full range of potential events, management is positioned to identify and pro-actively realize opportunities.

• Improving deployment of capital – Obtaining robust risk information allows management to effectively assess overall capital needs and enhance capital allocation.

Prime Link Partners with Isometrix to offer our clients a software solution that will ensure your organization establish your Enterprise Risks effectively and controls can be managed.

Risk Assessment Training

The aim of our SHE(Q) Risk Assessment training is to identify hazards, risks, environmental aspects and impacts, enterprise and quality risks per process. This approach ensures that employee’s understand the integration of processes and the impact of non-conformity in all areas.

Below is an example of how your SHE(Q) Risk assessments that can be done on our Software Systems. This gives you on-line access to all your activities, risks and link to legal requirements per activity.

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Customize your own dashboard for easy identification of high, medium or low risks, per area or per type of risk, activity or legislation.risk-fig2

 

More Risk assessments

Fire Risk assessments

A Fire risk assessment is the most important assessment that a company can conduct, because of lives that can be saved. Our Fire Risk assessment can include:

  • Visual evidence of non-compliance with legal requirements to assist the organization to correct any legal non-conformities;
  • Area based Risk rating that will assist the organization to prioritize non-conformances according to the highest Fire risks;
  • Competent Fire control experts providing guidance to improve your emergency management plan in relation to Fire.

Health Risk assessments

A health risk assessment is conducted to identify the possible health hazards posed on a worker while at the workplace. Our health risk assessments can include:

  • Recommendations of areas where Hygiene surveys are necessary to measure a specific hazard; (See also Hygiene management)
  • Area based Risk rating that will assist the organization to prioritize non-conformances according to the highest health risks;
  • Competent Occupational health experts providing guidance to improve your First aid, mitigate work related illnesses, absenteeism management, medical surveillance programme and related services. (See occupational health services)

Safety Risk assessments

Safety risk assessment is conducted to identify the possible Safety hazards posed on a worker while at the workplace. Our Safety risk assessments can include:

  • Visual evidence of non-compliance with legal requirements to assist the organization to correct any legal non-conformities;
  • Area based Risk rating that will assist the organization to prioritize non-conformances according to the highest Safety risks;
  • Competent Safety experts providing guidance to improve and the mitigation and control of Safety risks.

Quality risk assessments

Quality is the presence of satisfied customers. A customer, Internal or External, who are not satisfied, shows bad quality practices. – JM Juran Our Quality risk assessments include the identification of:

  • Testing methods
    • Informal quality risk analysis
    • ISO 9126 / ISO 25001:2007
    • Cost of exposure
    • Failure mode and effect analysis
    • Hazard analysis
    • Where in the process must you test the quality of your product / service?
    • When do you test your system? The more thoroughly, the more you reduce the risks
    • 3 things that are tested: Functionality, Characteristics, Behavior
    • 6 Main characteristics of Quality are:
      • Functionality
      • Reliability
      • Usability
      • Efficiency
      • Maintainability
      • Portability
  • Typical Quality risks can be:
    • Loss of key personnel
    • Late deliverables form suppliers
    • Customer satisfaction
    • Employee retention
    • Non-conforming products
    • Legal non-compliance
    • Insufficient resources
    • Lack of documentation

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