It is inevitable that in today’s difficult business atmosphere, management will be faced with the challenge of changing their old model organizational structure to meet with current industry trends. Many of our clients are faced with rapidly increasing demands made on their departments and must understand that business will be changed due to new technologies and shifts in the industry. When the corporation understands the business model will be evolving and the areas of change have been identified, what measures must be implemented for controlling all operational and enterprise risks.
Risk management is an effective strategy that can help manage the doubt that exists in any company. The actual procedure can vary from a few simple adjustments, to being an extremely involved process. TBI seeks to minimize the potential pitfalls and make the transition as painless as possible. Risk Management is an ongoing practice that is woven into the fabric of an organization as opposed to a reactive response to a specific situation or a temporary crisis.
What is Risk?
Risk Management processes need to be considered as cyclical, reviewing the suitability of previous actions, and reassessing risks in the light of changing circumstances. While Risk Management is primarily conducted during design and transition stages of the service lifecycle, a good continuous improvement program will assess the results of Risk Management activities to identify service improvements through risk mitigation, elimination and management.
Why is Management of Risk Important?
A certain amount of risk taking is inevitable if your organization is to achieve its objectives. Effective management of risk helps you to manage projects and improve operational performance by contributing to:
- Increased certainty and fewer surprises
- Better service delivery
- More effective management of change
- More efficient use of resources
- Better management at all levels through improved decision making
- Reduced waste and better value for money
- Management of contingent and maintenance activities.
Using Continuous Improvement to Mitigate Risk
- Define what you should measure
- Define what you can measure
- Gather the data
- Process the data
- Analyze the data
- Present and use information
- Implement corrective action
Using Metrics to Mitigate Risk
- Analyze existing performance metrics against relevant scope of efforts
- Generate critical success factors for goal achievement
- Identify individual metrics for each targeted process
- Develop strategies to address each process/metrics combination
- Evaluate accruing, completeness relevance and validity of existing metrics
- Develop recommendation for improvement for existing metrics
Using Governance to Mitigate Risk
- Refine roles and responsibilities; as well as cross functional accountabilities and authorities
- Standardize problem management, change management and project management methodology
- Develop formal reform escalation and conflict resolution mechanisms
- Develop OLA’s between business units that recognize one unit’s performance impact on another’s
- Make executive sponsorship visible