Why do companies often neglect a systematic approach to risks and opportunities?
- Do they believe to know the important risks?
- Are resources of personnel scarce?
- Do they expect high costs and unnecessary bureaucracy?
- Perhaps simply the increasing demands of daily business?
How can a company manage risks and opportunities – one of the most important entrepreneurial requirements – in a professional way?
Based on our experience the following, commonly acknowledged steps have proven to be successful in our consulting work:
- We start with the leadership team which supported by our consultants agrees on a risk policy.
- Subsequently, we implement a risk management system (RMS) as a permanent, systematic control circle with the following phases:
- identification (includes analysis, documentation and early diagnosis through appropriate performance indicators),
- evaluation (in workshops led by our consultants),
- management (strategies: avoid, reduce, transfer to third party, accept),
- monitoring of important risks and opportunities (includes reporting and possible escalation).
- We develop a proactive risk und control culture through training and coaching.
Our consultants are able to introduce RMS at a good cost benefit ratio, because:
- we link the RMS to existing planning and control systems,
- we make use of available skills and information,
- we improve processes systematically.
Our clients realize even further benefits such as:
- enhancement of bank ratings,
- strengthening of controlling tools (“proactive” controlling),
- fulfillment of legal requirements,
- a shared, cross-function perspective of risks and opportunities created by involvement in workshops.
Feedback from our clients:
- „Unbureaucratic, fast, efficient!“
Joachim Kolano, Managing Director Jenoptik Camera
- „Three years after introduction, RM is an important success factor of our company. Increased employee awareness of risks and opportunities and efficient processes – e.g. in our credit management – have helped us a lot. I sleep better these days!“
Uwe Beushausen, Managing Director Framo Morat