Risk Management

BENEFITS OF RISK MANAGEMENT

The implementation of risk management principles and processes is a powerful management tool, provided it is structured and used wisely. And among the benefits that society would derive from implementing the principles and processes of risk management, we can mention:
Employee risk awareness:
The implementation of risk management principles and processes helps the company BestWay raise employee awareness of risk, which
will strengthen communication between managers, and increase the efficiency of work within the company.
Preventing di cult situations in the future:
It is an attitude and/or the set of measures to be taken consisting to limit the professional risk, aiming to prevent this risk by canceling or reducing the probability of occurrence of the phenomenon dangerous that will affect the company BestWay.
Reduction of corporate liability:
The risk management process helps the company to reduce the pursuit of risks, therefore the company o ers possibilities more attractive investment opportunities.
Detection of risks that are not apparent:
Risk detection helps the company to identify all types of risks and better identify them.

PRINCIPLES OF RISK MANAGEMENT

Risk management is structured and comprehensive:
Risk management is integrated into all business activities. It requires a global and structured approach in order to allow a reliable measure of results.
Risk management is inclusive:
The involvement of the different actors is decisive in order to carry out relevant and efficient actions. Human and cultural factors are also taken into account in these principles.
Risk management is dynamic:
Risk management must be flexible. The competitive environment forces the organization to adapt to the internal and external context, especially when new risks appear when some risks are modified, while others disappear.
Risk management is adapted:
The risk management of an organization must be adapted depending on the resources available – resources of personnel, – nance and time – as well as according to its internal and external environment.

TYPES OF RISKS

The best way company has faced several risks that can be observed during its activities at the level of the two national polls (Morocco) or international (Senegal), then we can cite three types of risk that this company can confront:
Strategic risk:
In this type of risk, we measure the evolutions of the “BestWay”. the company will be able to face risks that will prevent the company
achieve its objectives, for example, poor management on the part of of the company, and poor quality control leads the customer to
replace the company and look elsewhere, and the employees to quit and turn to other competing companies, and we can also add the hiring of unequaled profiles.
Financial risk:
The company is threatened by a liquidity risk. Since the company is at two poles, the number of employees has increased, which can lead to the company having a financial deficit and the expenses will be greater than the gain. And since society has been disrupted, the risk of losing the market is higher which will decrease these revenues.
Compliance risk:
The increase in the number of dissatisfied customers shows that the company has problems with the quality of service. There is a lack of
coordination between company managers because of the lack of communication which will lead to problems on several levels (from customer dissatisfaction following the provision of services low quality, the resignation of employees, . . . etc.)

ORGANIZATIONAL FRAMEWORK FOR RISK MANAGEMENT

First, an organizational risk management framework will help the Bestway organization to integrate risk management into key activities and functions. The efficiency of risk management depends on its integration into the management of the organization, including
decisions. This requires the support and commitment of stakeholders, especially senior management. The development of the BestWay organizational framework, therefore, requires work to integrate, design, implement, evaluate and benefit the management of
risks in the organization. To best implement the risk management framework, Bestway must ensure that risk management is integrated into all activities of the organization and demonstrate leadership and commitment:
-provide resources for risk management.

– assign responsibility and accountability to the appropriate levels of the organization. Bestway should also incorporate risk management based on an understanding of the structure and context of the organization.
The structures vary according to reality, objectives, and organizational complexity. Risk management applies to all levels of the organizational structure.

CONTEXT ESTABLISHMENT

The task is well formulated when you know all the starting points, so it is important to start internally.it is important to start with an internal and external diagnosis. the context (internal and external), namely the environment in which the company develops, must be it is necessary to consider all aspects, including organizational factors that will be a source of risk. be a source of risk. The organizational context allows the company to integrate risk management into its activities and its essential functions. His performance needs, especially when it’s about making decisions. business functions must therefore be fully engaged in the process. the use of the organizational structure includes the integration, design, implementation assessment, and improvement of risk management in the company.

COMMUNICATION AND CONSULTATION

Organizations should develop a communication strategy and approved consultation to support the framework and facilitate the effective implementation of risk management. The purpose of communication and consultation is to ensure that stakeholders involved understand the risks, rationale for decisions, and the reasons why certain actions are necessary. Stakeholders are usually individuals, groups, or organizations outside the project who can influence or be affected by the plan. They will also have to provide information on the progress of the project. These stakeholders and their support are essential to the success of the project throughout its life cycle and provide the critical resources, external support, and influence needed to ensure the project reaches milestones and maintains the plan
until its completion. External stakeholders, often the end-users and customers, have the greatest impact on the success long term of a business or project. the purpose of the communication and consultation:
Promote accountability: Until risks are identified, it is di cult to de new roles and responsibilities within a project. Accountability is a major barrier to project completion and role and risk management mechanisms must be improved. Ensure realistic expectations: Project stakeholders have many reasons to invest money, time, and effort. time and support in a project, so it is important to ensure a mutual benefit through transparency on the progress made.
-carry out communication and consultation:
Involve the team: Project managers are often seen as responsible for communicating with stakeholders, but they shouldn’t be the only channel of communication. All members of the project team should be involved in risk management. This is particularly important if a person is an expert in a particular risk area or is responsible for a particular aspect of the project.

Leave a Comment

Your email address will not be published. Required fields are marked *