Risk management is an essential element of running a business or project.
On a small scale, it is possible to manage risks using common sense. However, as the business or project grows, it becomes necessary to put in place a more systematic method for identifying and managing risks.
This is where risk mapping comes in, it allows everyone to be more efficient and avoid problems.
A risk is something that have an impact on an objective.
It can be an unexpected event or uncontrollable situation. Risk mapping allows leaders to identify these factors and take the necessary steps to reduce their impacts.
Risk mapping can be compared to a road map which shows you where you are going and how you will get there. Risk mapping allows leaders to identify the obstacles standing in the way of their objectives and how to avoid them.
A company is faced with several types of risks, here are some examples.
- Contract risks: breach of contractual obligations
- Litigation risks: lawsuits brought against or by the company
- Data risks: loss or theft of sensitive data
- Cybersecurity risks: external or internal cyber attacks
- Product quality risks: technical defects in the finished product
- Process industrial risks: technical failures of the industrial process
- Raw material risk: failure to comply with environmental and health standards
- Work risk: delays and additional costs.
Risk mapping allows companies to identify different types of risks, understand their impact on their objectives and avoid them. Risk mappings can be analyzed one by one or consolidated to have an overview of the actions to be taken across the group.
This is where our Risk Management Platform comes in, giving companies the ability to easily create complete mappings, as well as perform a thorough assessment for each entity or project and consolidate these assessments at the level of a country, profit center or branch.
