Risk Management Best Practices

Learn from the Industry. #Top10

• Risks are everywhere. To be successful as an organization is crucial to identify assess and manage any risks that could affect business. To identify risks for an organization, it is important to look to the specific characteristics of the market and environment in which the organization operates.

1. Identifying and assessing risks

• To manage risks properly and effective a system approach is necessary. Invest in the right tools and knowledge to identify and quantify risks.

2. System approach

• When an organization identifies quantifies risks and establish action plans it is important to keep oversight on the interaction and relationship between the various risks. This allows an organization to respond better when an event occurs.

3. Risks often consist of a serial related events

• The market is changing, the world changes and so do the risks

change. To effectively manage risk, it is important that risks are

regularly evaluated and adjusted. Another important aspect of the

risk management process is identifying and assigning ownership.

4. Risk management is a continuous process

• Effective risk management requires staff with knowledge and experience

in this field. As an organization you can and want to invest here. Make

the right managers responsible for managing specific risks.

5. Provide dedicated resources and clear responsibilities

• The creation of programs or actions to manage risk and control will

require additional investment.

6. Analyze the costs of mitigation

• Risks are directly related to the activities that an organization performs.

By selectively in the structure of the organization and business risks can

be minimized.

7. Minimize opportunities

• Use a third party (someone with knowledge of risk management) to the

identified risks to be assessed. The feedback from an external party can

be very enlightening and perhaps lead to new insights. If possible, it is

highly recommended to have a professional third party to support the

whole process of implementing a risk management process.

8. Assessing the risks by an external party

• Invest time in the development of a management dashboard with which

risks can be easily analyzed. Combine the risks in the dashboard and

how these impact on the organization.

9. Monitoring of risks

• Successful risk management implementation requires:

• Train the organization in the practical aspects of risk management.

• Training should focus on all available positions within the organization

including management.

• Clarity about the responsibilities of all stakeholders with regard to risk

management.

10. Create a risk management culture

• Involve all employees in the risk management process;

• Management should encourage and support positive risk management process;

• Create clear roles and responsibilities;

• Invest in training to increase employee knowledge;

• Take on risk management as an integral part in such work discussions, meetings

and appraisals;

• Define clear risk management objectives for the organization;

• Assess employees for their input to the risk management process.

Examples to promote risk management:

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