All businesses spend money on risk management, regardless of whether or not it is called risk management. But if your organisation is not engaged in proactively managing and identifying risks then that spending will be poorly focused and in all likelihood money wasted on ineffective risk controls. Worse still, it is very likely you will have unidentified and therefore unmanaged risks!
When asked about business risk most people typically think of risks relating to hazards. Examples might range from fire or flood through to cyber security, data breaches, theft of intellectual property and reputational risks. Whilst these are important and significant risks, these negative risks only form part of the Enterprise Risk management (ERM) picture.
In the fast changing and competitive business environment, no business can afford to sit still. To survive companies need to adapt to and seize strategic opportunities and manage the risks associated with them. Businesses that are afraid to take risks rarely survive long term.
Enterprise risk management is about considering the spectrum of risks that an organisation may face from strategic risks and project risks through to operational risks and compliance. Aligning these risks to the strategic objectives and goals of the business and defining the appetite for risk that the organisation wants to take in pursuit of its ambitions. Setting a risk appetite allows risks to be prioritised and finite risk resources to be targeted appropriately.
Enterprise risk management is an endeavour that requires the engagement of staff at all levels of hierarchy within your business. Ensuring that risk owners manage their risks and that all staff play their role in ensuring successful management of risks. At its heart risk management requires vigilance and an embedded risk aware organisational culture. The ERM approach helps with the discovery of interrelated risks and how risks can cascade.
Arlington Risk Consulting offers a range of services to facilitate Enterprise Risk Management, focusing on the needs of SMEs which tend not to have a dedicated in-house risk function. Adhering to International Risk Management standards such as ISO31000:2018, where applicable, and using the tools and techniques of ERM. Arlington Risk Consulting works with key staff and risk owners at all levels within your business.
Services range from training, facilitating risk identification and risk assessments, development of risk frameworks, risk reporting, business continuity plans and risk workshops. Arlington Risk Consulting will work to your risk management requirements. This could be a few distinct risk management services or on a retainer basis work within your organisation for a few days a month. If your organisation has never formally engaged in risk management then a good place to start and find out more would be via an on-site training course.