If you are planning to take your business to the next level, there will be career threatening risks; but if you are able to manage those risks and calculate the pros and cons of your actions, then your enterprise will be a few steps up the ladder. Enterprise risk management will help you deal with backfiring decisions and control the damage in case it is unavoidable. Following points will help you out.
Laidback attitude towards a problem is suicidal. Professionals take quick action against any issue that is going to dent your enterprise’s image. They also weigh the risk more accurately, since this is what they are trained for. It may add to the expenditure of your company but will prevent your company from losses.
Know each and every detail of what your decision is going to result in. For example, if your enterprise’s real estate project gets into a legal tangle with authority, then, do you have the required approvals to get yourself out of the issue? You should know the risk beforehand and also what your reaction will be in case that risk becomes real.
PR is often considered to be a shady practice. But, each and every enterprise needs to have a PR department if it wants to deal effectively with media. They work towards building a positive image of their clients and prevent media from becoming hostile against the enterprise. They not only manage risk, they contain damage also.
Well developed strategy that is in sync with your enterprise’s aim and also reduces risk should be chalked out for each project. Slipshod strategy causes blunders and often you will end up in humungous losses and legal authorities standing on your doors.
If you have committed a mistake, accept it, rectify it and move on. There is no point in hiding your mistake because some day, people will get to know it. Johnson & Johnson Tylenol crisis of 1982 should act as a tutorial while managing risk. The pharmaceutical and FMCG giant landed in a big controversy when its famous drug “Tylenol” was found with a type of cyanide. A few consumers died because of it. The U.S. based company did not hide any facts; it accepted its mistake and recalled all batches of the drug from all stores. Yes, it lost millions of dollars, but after it re-launched the same drug with a new packaging and proved that it does not contain any hazardous substance, the drug became the market leader within a few years.
Track the progress of your new project. Try to analyze whether it is going in the right direction. Use statistics to get an accurate image of the progress and take appropriate steps to manage risks. A brainstorming session with your enterprise’s employees will be beneficial and help you in risk management.
Enterprise risk management is necessary and one should always be ready for it. It is important that necessary measures are taken to keep it covered.