Communicating Risks within an Enterprise through Risk Management Software

Oct 27 07:42 2011 Ahmad Wali Print This Article

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Risks are inevitable and are prone to affect any kind of small, medium or large organization. It's essential that businesses continue to analyze, monitor and control the occurrence of risk within their respective organizations. It's also essential to remember that even with the best of risk-based planning and the best of implemented controls, risks can still emerge unexpectedly and without warning.

Enterprises develop several risk assessment and mitigation plans with the help of risk management systems. One aspect that needs to be taken care of specifically in medium or large enterprises is risk communication. This rather new concept surfaced when companies lost major potential customers and shareholders by being secretive about potential business threats. This secrecy led to the hard earned credibility of some companies to fade away, which was unfortunate because the situation could have been remedied with risk communication practices. Risk communication is a complex and important part of helping different stakeholders understand business risk. Risk management software allows a business to more effectively control risk and to more effectively communicate real-time information about risk with potential customers, shareholders and anyone else who needs to get a good grasp on the "risk facts." The first step is to establish trust with stakeholders and involve them as legitimate partners in the business. This helps in developing a two-way communication bridge through which partners and management can exchange ideas and collaborate. This is easily accomplished when risk management software allows all concerned parties to effectively communicate ideas through a web-based platform. In extensive discussions, it is common practice to maintain minutes of the meeting. Members of virtual meetings can now view and edit such documents which should commonly be shared among management. This helps all concerned parties to stay on the "same page" when it comes to ongoing activities and any plans related to business development. Management is then able to respect and value the opinions of all partners. In the long-run, increased collaboration will allow businesses to grow in a positive direction.

Another advantage of incorporating a risk management system into a business is the increased amount of transparency that is manifested in both operations and communication within the organization. This increased level of transparency results in an open discussion between various departments and allows management to evaluate different process areas. Management can then assess strengths, weaknesses, opportunities and threats in the business. Through collaboration, the response of stakeholders will influence the amount of attention each business area is given by management. This will empower stakeholders to make decisions related to the enhancement of the existing SOPs in the system. This proves that open and scalable communication leads to the coordination and collaboration with stakeholders that may also bring further business to the enterprise.

Once risks occur in the business, the best way to eliminate these risks is through proper planning. Risk management software helps in analyzing business and providing valuable insights that help to resolve conflicts and risks within the system. The primary goal of risk management systems is to improve individual and collective risk-related decision-making ability in the company. After joining all the pieces of the puzzle together, management is in a better position to decide which process areas are failing and prone to risks. Similarly, once a risk has hit a certain business area; the company can evaluate several parameters and decide on the next course of action.

Thus, enterprises around the globe are taking advantage of risk management software to communicate, collaborate, and coordinate with essential customers and partners in regard to risk.

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Ahmad Wali
Ahmad Wali

You can visit MasterControl for more information about Risk Management Software and Risk Management System

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