When a consumer looks at your business, they often see a company that has to worry about nothing but research, development, implementation, and profit reaping. What they don’t see is the struggle in-between the lines, the delicate balancing act many of America’s most successful businesses put-on on a second-to-second basis. The only time they have any idea that things have gone wrong is when the stock market slips or the news reports your losses.
As you well know, running a business is akin to walking a tightrope; you’ve got to walk the line between innovation and profitability, employee morale and the bottom-line, and good and bad decisions. In all of these cases, risk management is the key to making the right choice. If your business, like so many others, lacks the in-house ability to manage risks and make wise decisions, then you need enterprise wide risk management from risk management consulting firms.
What is Enterprise Wide Risk Management?
Enterprise wide risk management is the method of considering the benefits and risks of everything your business does. In the end, the hope is that the risks will be mitigated and benefits maximized. As Inside Indiana Business points out, risk management is all about business analytics and business intelligence, but put more simply, it’s about making your company more productive, profitable, and sustainable.
How Can Enterprise Wide Risk Management Improve Businesses?
- Monitor Your Industry
- Foster Business Innovation
- On Task Equals on Budget
According to The Houston Chronicle, one of the biggest perks of enterprise wide risk management is gaining more insight into your industry. By providing you with knowledge about the happenings in your industry, risk management consulting services can give you a better idea of what you’re competing against, what has worked well for your competitors, and so forth. Doing so, they can paint you an industry specific picture of what to avoid and what to work toward.
The biggest criticism of enterprise wide risk management, perhaps, is that a more controlled environment will lead to stagnated creativity. However, as Forbes suggests, the speed, flexibility, and control over the working environment that risk management grants is more likely to be a catalyst for revolution than a tranquilizer. Knowing what to avoid and how to avoid it, the source writes, is like having a map; you know exactly where to go to find what you want.
Would you be surprised to know that, according to Project Smart, 90% of all projects go over their projected time limit or fail entirely? As Calleam.com, a project planning blog, points out, 17% of projects go so far over budget and timing that they put their company’s future at risk. That’s what happened to retail chain J.C. Penney in the spring of 2013. Due to poor project and risk management, they lost 55% of their stock’s worth and $4.25 billion in sales, according to The New York Times. Risk management professionals can help you avoid similar issues.
It’s important for you to realize that no risk management is fool proof. Even the best defense can often crumble under the volatile forces of the market. As Investopedia points out, risk management is a constantly evolving, fluid concept that needs to be addressed by the very best, if you want success. By finding the best enterprise wide risk management team, you can put yourself in the best possible position. Get more on this here.