Risk Management is here to stay – Part 2
It’s not a FAD, but a FORCE to be reckoned with! Risk Management is here to stay! Are you READY?
When thinking of creating solutions to meet business needs, risk has to be a part of the conversation. You do not want to build solutions that pose risk to the organization though you may have successfully installed the solution. Though the need may appear to be met, once risk enters into the equation, it may very well not be met at all.
There are different ways to uncover risks. Here are a few ways to get you started as you continue to transform your organization:
1. Process Mapping
Process mapping is a great way to uncover risks and determine if there are controls to mitigate it. As you review processes you can analyze each step to determine what could go wrong during that step. After, determining what could go wrong, you then determine what controls do you have in place.
(1) Catch something going wrong before it does (preventative control)
(2) Advise someone that something has already gone wrong and it needs to be fixed (detective control)
(3) Put a control in place after analysis of the detective control, and the root cause has been determined (corrective control).
Process mapping is one of the most powerful techniques that allow you to uncover a lot, and normally a good first place to start.
a. Failure Modes & Effective Analysis (FMEA) – In addition, leveraging an FMEA to evaluate the process is a great way to have one centralized location to capture where failures may occur in the process, how severe those failures are, and how frequent those failures may occur.
2. Past Audits
If your organization has had audits conducted in the past, this is another great place to review the audit materials to determine where risks have been found, and if there were sufficient controls to mitigate the risk. These reports can provide a lot of insight on where in the organization problems have arisen in processes.
Being a part of processes that are conducted in the organization can give you hands-on experience. It helps you identify where risks may reside in the organization. Put yourself in the shoes of the customer and determine if you the solution you are interacting with is the type of experience you as a consumer would desire.
As you continue to build world-class solutions, consider what risks the organization may pose. Also, consider what controls need to be put in place to mitigate those risks. Risks are not necessarily a bad thing if controlled correctly, and depending on the type of risk being discussed. However, risks can become VERY bad when not identified and addressed appropriately.
Biography: Paula Bell is a Certified Business Analyst, Master Life Coach, Certified Diversity & Inclusion Manager Coach and Career Development Coach. She has over 20 years of experience working in corporate America in varied project roles and industries. In addition, Paula has been successful in running a consulting business that focuses on mind, body, and soul. She has a passion to inspire, motivate and encourage others holistically. To find out more about Paula you can visit her website at www.paulaabell.com.