In the business market always hides a lot of risk, subjective and objective direct threat to revenue, brand image, effective operation of the business. By setting process risk management business professional complete business could face and minimize damage.
The same Lac Viet Computing learn risk management is and how to control them best through the article below.
1. Risk management what is enterprise? Practical example
The first risk is the uncertainty can be measured and are two-sided: both positive and negative. Risks that may cause these losses, loss and danger, but the risk can also bring to people the opportunity and bring good results in the future.
Follow Tony Merna, qsettings menu value enterprise risk is a process that allows to identify, assess, plan and manage the types of risk. This activity will guide to 3 main goals: to identify the types of risks, perform analyses in an objective way the type of risks peculiar to respond with the type of risk that an appropriate and effective.
Business should be no risk approach in a scientific, comprehensive, continuous and systematic efforts to identification, control, prevent or minimise the damage, loss, the adverse effects of risks, at the same time find a way to turn risks into opportunities for success.
Example of risk management
When out preparing to open a factory new level leaders need to identify the potential risks that may occur. This helps businesses to avoid the risk of unwanted and plans to respond accordingly.
Such business can machinery maintenance periodically, apply software quality management, connection relations with many suppliers,...
2. Businesses faced with the potential risks, how?
Facing the risk is an inevitable part in the operation of any business. Understand the types of risk management in business helping to prepare and to plan effective response.
Here are 4 types of main risks that businesses often face:
2.1 Risk strategy
Strategic orientation is viewed as a map for directions, help businesses understand where you're going and how to get to the destination.
Usually there will be 2 types of hazards main strategies: one strategy does not fit with the vision, mission of the organization; second, the strategy going in the wrong direction compared with the original goals outlined.
2.2 risks operating system
Risks operating system related to the way daily operations of the business. This is the problem arising from the internal operations and workflow, production, service comes from the parts of the company.
Some examples include:
- The progress of the work always late though boss always “embankment embankment” reminder every day
- Employees forget – errors – duplicate work because of lack of work processes clear.
- Find information and data, time-consuming that there is no mechanism lookup, track historical activity.
- Sir communicate via Group chat Zalo, Skype, Messenger,...
- When a stage in the workflow false, but there is no way to check
To risk management business, in this case, investing in a management software, workflow automation, such as LV-DX Dynamic Workflow. Thanks to standardize and digitize all processes, related information into ecosystem can manage, measure, coordinate allows businesses to control and restrict completely the risks that may occur.
2.3 financial Risk
This is the risk related to the risk of financial loss business. The loss this can arise from factors such as:
- The volatility of exchange rates, interest rates or commodity prices can affect the cost and revenue of the business.
- Business may have difficulty in making payment of the debt or maintain steady cash flow.
- Customers or partners not paid on time can reduce turnover and affects the cash flow of the business.
2.4 Risk objective
In addition to the factors listed above, there still exists a number of risks outside the control and impact to the operation of the business.
These risks often come from the external environment and may include:
- Recession, inflation or the change in the economy can affect business operations.
- Events such as earthquakes, floods or storms can cause damage to property, and disrupt operations.
- Political events such as wars, riots or government changes can affect the business environment.
3. Process risk management business efficiency
3.1 hypothesis on the context, risk can occur
First, businesses need to visualize and predict all cases of unexpected can happen in the future. This stage requires the implementation needs in-depth look about the market is active and regularly update the transform on the market.
To unity in the orientation hypothesis, the enterprise should establish the evaluation criteria and determine the structure of the analysis.
3.2 identify the potential risks
The identification of risk, including considering the whole of the operations and processes of the business to identify weaknesses or vulnerabilities that could lead to risks.
Businesses need to pay attention to such factors: legal Regulations, market trends, financial markets, technology, engineering.... Then sort each type of risk corresponding to the context in the following ways:
- Access to information from related sources such as suppliers, customers, industry expert and internal staff to have a multi-dimensional view of the risks that may arise.
- Use the collected data to a clear identification of the problem is useful, as well as the potential risk.
- Reviewing workflow, current test and identify limitations, vulnerabilities can interrupt business operations.
- Considering the incidents that have happened in the past to draw lessons and build scripts to assume for the risks that may occur in the future.
To save time in the stage of risk management, enterprise completely possible thanks to the support of the management software workflow. LV-DX Dynamic Workflow show in detail the whole process work and who performs each step, allow for the management, timely detection, treatment when the problem occurred.
3.3 analyze and evaluate the influence level of risk
After the risks in the business gradually “is live”, managers need to continue to analyze and evaluate the probability of occurrence as well as the level of influence based on indicators such as: Estimated losses, loss of revenue, damage to brand image, cost, solve,...
By analyzing, in-depth assessment of the risks will help you “own” on each specific case and the impact of them to the project or goals of the business.
ChatbotAI be integrated into the software system administration of LV-DX can support businesses in the stage, analyze, evaluate and predict the risks that can occur based on the reported data, the data from all departments. Just enter the questions, Chatbot AI will automatically synthesize information, analyze and combine the trend market in order to offer the most correct answer.
3.4 Put the handle risk
Based on the assessment of the degree of influence of risk, the business will plan treatment for each specific case, can make the most serious.
There are 4 ways to business, faced with the potential risks:
- Dodge risks: Completely remove the ability to encounter risks by avoiding perform the activity or decision can lead to. This embodiment is used when the risk can cause serious consequences that business can't accept.
- Control, minimize risks: Minimize the likelihood or impact if the risk occurs.
- Risk transfer: Transfer of liability or cost related to the risk for side Tuesday. This form is often done through the purchase of insurance, signed the contract with the service provider, or party hire Tuesday risk management.
- Accept risk: Accept that risk is inevitable or not worth it to take control and be ready to deal when it happens.
3.5 build system quality management to track
Finally, businesses need to integrate the software system quality management to monitor and evaluate continuously the potential risks. This system must have feature to monitor the risks have been identified and processed to update the preventive measures when necessary.
However, the biggest challenge the greatest in the process of risk management in business it is the lack of data to assess and measure. Because these are all potential issues, hasn't happened yet, so the “shape” is not easy.
Solution LV-DX Dynamic Workflow allows businesses to collect data, monitor the situation of risk, from which implement continuous improvement. This ensures that your business always be the best preparation ahead of the risks that may arise.
Besides, the software is equipped with features track and progress monitoring, accurate real-time. Both managers and employees are able to get any work completed/failed, cause of failure, the person responsible. Provides visual reports on all indicators in the process with data analysis, scientific reviews, to improve the process.
As already mentioned, the risks do not always carry negative connotations. By identification, analysis and management risk management business according to the system, you not only protect the organization before the unexpected challenges but also turn risk into an opportunity to “pedal” for growth.
CONTACT INFORMATION:
- Lac Viet Informatics Joint Stock Company
- Hotline: 0901 555 063 | (+84.28) 3842 3333
- Email: info@lacviet.vn – Website: https://lacviet.vn
- Headquarters: 23 Nguyen Thi Huynh, P. 8, Q. Phu Nhuan, ho chi minh CITY. Ho Chi Minh
