How Can Risk Management Help Your Organisation?

December 1, 2016

Every organisation needs to consider risks that can threaten its existence.

From natural disasters to lawsuits to technology malfunctions, there are many factors that can influence a company’s productivity.

Do you have insurance to cover these possible incidents; if so, do you have sufficient coverage?

Do you have plans and procedures in place to prevent employee injuries?

While this may not be feasible or affordable for smaller companies, larger organisations may greatly benefit from hiring a designated person whose only job it is to assess and prevent risk, a Risk Manager.

“Risk managers work with companies to assess and identify the potential risks that may hinder the reputation, safety, security and financial prosperity of their organisation,” explains allaboutcareers.com.

The first advantage of hiring a Risk Manager is that this individual will identify all the possible threats that can be facing the company.

This can seem banal, but this professional will be able to point out risks that you may not have even considered.

Second, a Risk Manager will put plans in place to mitigate the risks, which will involve several aspects.

This individual will contact insurance companies to assess your existing policies, and to see if you need more coverage, or any additional policies.

Then, this expert will create plans on how to handle possible emergencies, accidents or incidents, should they occur.

This can involve compiling company booklets that address sexual harassment, gender and race discrimination’s, unfair dismissal procedures, etc.

Third, this professional will become the go-to person for top management to bounce ideas off of.

As an expert in risk mitigation, they can be a sounding board for future decisions, and how they can negatively impact employees and/ or the brand.

Fourth, a Risk Manager can supervise and oversee employees in their day-to-day operations to observe and correct any issues that may pose a risk.

They can recommend and design additional training’s to streamline operations to make them safer for everyone involved.

Although you may look upon hiring a Risk Manager as an additional expense, it is possible that you can’t afford NOT to hire this expert.

A simple natural disaster that ruins the inventory in your warehouse that wasn’t properly insured can put you out of business.

While Human Resource specialists and finance staffers are usually in charge of these decisions, larger companies should hire a dedicated person to handle and mitigate risk.