Edinburgh (PRWEB UK) 14 September 2012
For many small to medium sized enterprises (SME’s), risk is synonymous with ‘threat’. The word itself is used in that context, by way of example – “it’s a risky business”; implying loss.
However, in Risk Management terms, risk has two elements, the threat and the usually ignored element, opportunity. Taking both risk elements into account, threat and opportunity, is a critical part of any risk management strategy.
Risk management is an increasingly important business driver and stakeholders have become much more concerned about risk. Risk may be a driver of strategic decisions or it may be a cause of uncertainty in the organisation, but ignore risk management at your peril.
A company-wide approach to risk management enables an organisation to consider the potential impact of all types of risks on all processes, activities, stakeholders, products and services.
Successful risk management can affect the likelihood and consequences of risks materialising, as well as maximising the opportunities which deliver benefits related to better informed strategic decisions, successful delivery of change and increased operational efficiency.
“By implementing a comprehensive risk strategy across the business, SME’s are realising benefits in many areas; reduced cost of capital, more accurate financial reporting, improved perception of the organisation, better marketplace presence and increased competitive advantage.” commented John Sanders, Director of Assess Improve Measure Ltd.
Other articles in this series can be found at:-
Improving the bottom line in manufacturing – Leadership development http://uk.prweb.com/releases/2012/7/prweb9707442.htm
Improving the bottom line in manufacturing – Internal supply chains
Improving the bottom line in manufacturing – Lean through-out the business