How business risks are managed

How to put risk mitigation into practice in your company? 

1. Diagnosis 

Do an internal analysis of your company to identify which areas are most exposed to risks. In general, the sectors most affected are those that deal with people or drive most of the revenue - purchasing, finance, marketing, sales and human resources. 

Then, check which processes are most prone to failure or that may be poorly sized. If it becomes clear that a process has a negative impact on the company's operations, it is precisely in it (and in its respective sector) that we will work on the next steps. 

Remember that the success of a risk mitigation plan depends on the participation of employees, regardless of hierarchy. Therefore, this diagnosis must take into account all levels of the company's structure, without granting any kind of privilege to the highest positions. 

2. Mapping the risks 

Mapping risks is a way to anticipate unforeseen events. 

Based on the errors and other problems exposed in the diagnosis phase, it is possible to identify what potential risks they may bring. List these risks and give them a probability of occurrence, also informing how serious their impact could be for the business. 

Thus, you will be able to prioritize risk mitigation, which leads us to the action plan. 

To make this step more efficient and improve your risk management, try to create a corporate governance model to oversee these activities. 

So, instead of fearing the risks, how about using measures that are really capable of keeping these threats under control? By leaving your employees prepared to act in the best way when this type of unforeseen event occurs, desperate attitudes and setbacks with your customers are avoided. 

Thus, your company will be able to reverse bad situations - a huge competitive advantage that will certainly stand out from your competitors.