Why is a risk register a smart business tool?
An important aspect of a strong business model is to recognise that simply because a risk does not eventuate does not mean that the risk itself doesn’t exist. The solution is incredibly simple but, and yet it’s rarely implemented successfully.
Key Points
Risk registers should be unique to your workplace and categorise what could be potential risks in key areas.
Risk registers are a record of potential risks that have been evaluates and prioritised in order of concern.
Responsibility for a business, project or activity should include having a risk register to raise awareness of and manage any associated risks.
So, how do we build a a smart risk register?
Identify the major risks that can impact your business – there are five main types of risk, but the level will be different for every business – it is not a one size fits all.
Be prepared to be honest – it can be useful to ask a third party to assist with developing the register as it is challenging to be honest when diving deep in your own company.
Build a risk register tool that is manageable, informative and appropriate to your business and is responsive to change.
Consider the areas in your business where you might need a risk register – don’t try to do this all at once – where is your greatest risk, that’s the first register.
Every day in the workplace companies juggle opportunities, respond to market challenges and respond, often with little preparation, to evident and emerging risks. An informed risk register should be a key reference point against all projects, new business decisions and changes in the market.
Questions to consider
Have you identified the major risks which can affect your business? Often there is a policy and a procedure in place, but we rarely see active risk registers in place.
Do you have a risk register identifying high to low risks in each of the following : physical, safety, cyber, financial, legal, market and operational, as appropriate to your business.
Do you review these on a regular schedule, at Board meetings, management meetings etc.? Is a review conducted after an incident, a market shift or a change in legislation.
Listen here for the latest Monitoring Moments conversation with Dianne Gibert & Julie Mills as they reveal how the iMonitor Risk Assessments and labour hire licencing applications have led to our revised thinking on the importance of smart risk registers.
The Business Monitor Risk Assessments and subsequent Risk Registers have been developed to assist companies to minimise risk and maximise success with strong management systems as the platform.
Contact us to have a conversation, book an assessment and be a risk management leader – not a risk responder.