Proactive risk management
Planning today for tomorrow’s worst-case scenario
In a now famous lesson on the importance of foresight, Walter Gretzky once told his young son, Wayne – “Skate to where the puck is going, not where it has been.” Like any good risk manager, the elder Gretzky recognized that the key to gaining an advantage, and avoiding disaster, is planning your next move, as well as the moves of opposing forces.
In the world of risk management, a proactive approach is critical. Risk management ensures a contingency plan is in place and staff and systems are prepared and able to respond in worst-case scenarios. Ultimately, risk management can determine whether your organization weathers a financial storm or folds when faced with adversity.
What is proactive risk management?
Risk management enables an organization to anticipate, prevent or manage current risks, as well as potential risks. Organizations that practice proactive risk management are nimble and able to quickly adapt or respond to negative developments or crises. Simply put, proactive risk management allows an organization to plan today for tomorrow’s worst-case scenario.
So what does proactive risk management look like?
The exact composition of a risk management approach will vary based on an organization’s structure and needs. But while the most effective models are tailored to your specifications, there are some key components that all proactive risk management models should share:
Early assessment of risks
Timely reporting of potential risks
Effective mitigation measures
Team-focused management of emerging risks
Prioritization of risks
Development of a comprehensive contingency plan
Is your organization’s risk management process nimble and ready to respond to potential threats? Contact us at 757-637-0440 today to learn more about proactive risk management and how Pro-Concepts’ solutions, such as Risk Radar Enterprise, can help ensure your organization is prepared today to weather the potential storms of tomorrow.