What’s in it for me? Why do you do risk management?

What’s in it for me?

What’s in it for me? Why do you do risk management? Crises can occur at any time and there is no end to the number of potential disasters. The most effective way to deal with them is through prevention. Taking time to create plans for risk management, can also make a difference. The difference between a major loss and getting back on track reasonably quickly. Many of the steps in the development of such plans are useful for dealing with a crisis. There are many among them that are good practice. This for the overall health of the organization whether or not a crisis occurs. Being financially responsible, having strong lines of communication, providing protection for your employees, and creating an efficient management structure are always excellent practices. Even when there is “business as usual.”In this contribution I write my own opinion, not that of any organization
Author: Manu Steens

“What’s in it for me” is twofold

“What’s in it for me” is twofold: in times of crisis and in times of “business as usual.”

The table below lists some of the benefits of risk management both in times of crisis and in normal times.

In crisisDuring “Business as usual”
Avoiding unexpected costsPreventing unexpected costs
Corrective actions: who should do what in the teams is knownPrevention of workplace accidents
Communication flows smoothly during crisisPrevention of fraud
Downtime remains minimalPrevention of data theft
The teams are prepared for a possible worst-case scenario.Prevention of data corruption
Everyone knows perfectly well his/her tasks and responsibilities and liabilities in times of crisis regarding the Time-Critical processesEveryone knows perfectly well his/her duties and responsibilities and liabilities during “business as usual.”
Teams have experience thanks to exercises and training. Emotions stay under better control.Communication during “business as usual” is a natural way to train communication in crisis
No cultural, political, legal, regulatory, financial, economic and competency surprisesYou know the trends that can have an impact on the organization and its operations
You took the perceptions and values of external stakeholders into accountYou know the perceptions and values of external stakeholders are known
The organization optimally uses the organization’s capabilities in terms of people and resources The organization’s capabilities in terms of people and resources are known
Information flows and decision processes run optimallyInformation flows and decision processes are known and up to date
Everybody knows their roles and responsibilities, everyone knows what to doRoles and responsibilities are fully known and assigned to the most appropriate individuals
The organization knows the risks betterDependencies between processes and projects are known and utilized
The Crisis Management Team (CMT) can determine the scope of the crisisThe risks are known and things are organized to avoid some risks
The focal points are discussedMeasures are taken only for the relevant risks
High-quality solutions are already implementedObjectives are negotiable
The CMT makes decisions smoothly and responsiblyThe Risk Management Team implements high-quality solutions
 The Risk Management Team makes decisions responsibly
 Decisions maximize opportunities
 There is time to make decisions

Manu Steens

Manu works at the Flemish Government in risk management and Business Continuity Management. On this website, he shares his own opinions regarding these and related fields.

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