The main risk factors in a company

Published on 19/04/2024

The main risk factors in a company

Published on 19/04/2024
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The main risk factors in a company

The risks shouldn’t be assumed, they should be analyzed. At least when it comes to business risk management. Knowing how to identify and manage those factors that pose a risk to our organization can be crucial for the survival of the company, do we know them?

Risk Management is acquiring an important role in the business environment, as confirmed by the most recognized management models internationally such as EFQM. No activity is free from associated risk, if we are clear about this when managing our personal life, why not transfer it to the professional field? Risk in project management is one of the most important factors when tipping the balance towards favorable or unfavorable outcomes.

There are many ways to approach risk management, but they all agree on the first step: risk factor identification. The following scheme shows an appropriate process for risk assessment:

Identification ? Analysis ? Evaluation ? Treatment

The first phase of risk identification involves knowing the typology of risk factors. These are some of the possible risks that our organization may face:

  • Corporate Risks: it is the uncertainty organizations face when carrying out their activities.
  • Project Risks: Efficient project management in our company can be as important as a line of credit or the relationship with a client. It is important that we know how to monitor and improve project development in our organization for effective risk management.
  • Operational Risks: those associated with clients, suppliers, products and services, etc.
  • Financial Risks: credits, treasury, investment, market condition, etc.
  • Business Risks: these are legal risks and those that shape the organization’s strategy, primarily.
  • Global Risks: those associated with culture, reputation, etc.
  • Process Risks: refer to the risks posed by the processes of our company that are subject to improvement or change to generate value. Controlling and working towards process improvement is always a way to combat risks.

Risk management should be integrated into the organization’s processes, that is, it should not be conceived as an isolated activity or one whose responsibility lies solely with some employees. It is the duty of all members of the organization, especially the management area, to design and execute processes that consider the risks the organization faces.

What should we do once we have identified the risks?

Undoubtedly, the best thing to do is to apply actions to eliminate, reduce, minimize, or control the risks.

If we are clear that project management plays an important role in our company, we must also be aware of the importance of risk management. The outcome of assuming a risk should not always result in negative results; it should not necessarily be seen as something negative. Sometimes it can lead to a positive deviation from what was expected, so it can also be considered an opportunity. But leaving that uncertainty to chance seems like too risky a bet when it comes to our company, so every company that wants to survive should control the risks involved in its activities.

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