3 Ways to Mitigate Major Risk Events
The current pandemic is pretty much the most significant disruption we have ever experienced. In the containment of the risk impact, and ensuring operational continuity, here are three main categories to be considered. (There are more than three, but these are a good start for a process-centric model.)
Identify Critical Processes
This is not surprising. With a process-centered model, you need to identify critical processes. It is important to reduce the risks not only from a high strategic level, but also from an operational process level.
When the inherent risk increases, are the current controls sufficiently effective? To answer this, we need a risk management system that also captures the effectiveness of control. For this level of detail, we need a process oriented business model. This makes it possible to quickly identify and mitigate the risk and improve the ability of business operations to continue.
Identify Critical Supply Chain
Knowledge of the locations of the components of your supply chain is crucial and is directly related to operational processes and the resources concerned. Only in this way, you can analyze your workflows, which are regional problems and identify the potential for global disruptions.
In addition, understanding these connections makes restoration possible when services come back online.
Identify Critical People
This is particularly important in the event of a large-scale disruption. Implement a backup strategy of responsibilities to ensure that key processes are always covered. This will enable an ongoing positive customer experience as well as maintain c.
When utilizing a process-centric business model, you will reduce the time lost trying to determine who is responsible for making decisions and solving problems as they occur.
This also underlines the importance of documenting processes and keeping them up to date. When inherent knowledge is readily available, people can be onboarded quickly and effectively improve their work. These processes should include supporting systems necessary for employees who work remotely.
Another important aspect is recovery. How do you bring people back online? What employees or production sites are in affected zones? Understanding the degree of impact is extremely important when planning to restore the workflows.
For even more information on this topic, download our latest whitepaper, Dealing with Uncertainty & Disruption with Effective Risk Management.