The benefits of communication in proactive risk management
In a previous post, we provided an overview of proactive risk management – what it is and how this approach functions in forward-thinking organizations. Here we’ll take a deeper dive and examine the benefits of proactive risk communications.
Communication is key
Communication is the cornerstone of virtually every business process, and risk management is certainly no exception. Even the most comprehensive, well-designed system fails if it lacks proper communication. Proactive risk management is effective because it not only identifies, assesses and analyzes emerging risks, it also ensures that those risks are reported and communicated to the appropriate entities so that the organization can plan, respond and mitigate the risks. The fact that a potential risk was identified early is irrelevant if it is not communicated timely and effectively.
Communications systems have come a long way from the days of tin cans and string, and so should your channels for communicating and addressing risk. If you are still utilizing antiquated or inefficient systems, listen up – this section is for you.
In today’s web 2.0 world, tools to monitor and communicate risks in real time are truly at risk managers’ fingertips. Pro-Concepts’ web-based Risk Radar Enterprise application enables cost effective management and communication of cost, schedule, technical/performance risks/opportunities within a common flexible and scalable enterprise framework. This tool provides a robust solution for ensuring departments and staff organization-wide are informed and invested in the process of risk identification and mitigation.
North Carolina State University’s Enterprise Risk Management Initiative analyzed a 2011 study of nearly 400 executives from 10 major industries. In this analysis, the authors stated that proactive risk management is critical to “both drive competitive advantage and sustain future profitability and growth.” Furthermore, the authors concluded that forward-thinking, proactive organizations can “create shareholder value by driving future growth and profitability, and differentiating themselves from competition.”
Ensure key staff and departments within your organization are effectively communicating risk – contact us today to learn more about Risk Radar Enterprise and its innovative communications platform.