It is impossible to conduct business without risk, and in many situations risk is necessary for growth. However, it is within your control to determine what constitutes an acceptable level of risk for your organisation. Through appropriate risk management you can identify, assess and mitigate these risks, thereby ensuring that you adhere to your predetermined level of risk.
Do you manage effectively the risks in your business? Here are five questions to help you find out:
1. Is there a risk management system in place that has an integrated focus on all the risks that your organisation may encounter?
2. Do you have key risk indicators in place to help identify situations where further action is required to reduce the level of risk (both the severity of potential impact or the likehood of occurrence)?
3. Is the information that you base your decisions on reliable and always up to date?
4. Are your financial systems and policies fortified to prevent fraud and is all of the financial and non-financial information reported across the organisation accurate?
5. Do employees feel safe to talk openly about the problems they encounter or the risks they become aware of? Are there effective systems in place to facilitate this feedback process?
Please see the video below to learn more about the benefits of our Business Diagnostic App: