Boost Your Sales by Integrating Risks into your Key Account Management

In the industrial world, Risk Management [RM] has been mainly associated with Health and Safety for many decades. Gradually it has expanded to the level of Enterprise through RM’s integration within the ISO‐9000 standard and more specifically ISO‐31000.

Unfortunately many Managers still consider risks as a ‘process of prevention’ to protect their activities against ‘bad luck’ or the effect of ‘Murphy’s Law’.

The ISO‐31000 definition of risk is important in this context…

“Risk is the effect of uncertainties on objectives.”

A second fundamental concept also needs to be taken into account…

“Risk Management is not about managing risks. It’s all about taking decisions with risks in mind.”

In these troubled times, COVID‐19 has destabilised many of our routines, convictions and beliefs. We are confronted every day with the concept of uncertainty. At the same time, we also see politicians and managers in many countries being challenged to make difficult decisions with risks in mind...

If there is one world where the word ‘objective’ is part of everyday discussions, it is definitely our world of ‘Sales’.

Although integrating Risk Management at the level of Enterprise is a slow and time consuming process, rapid achievements can be generated by simplifying the concept and restricting implementation to specific activities.

One of the foundations for success in managing Key Accounts is your ‘Diamond Relationship’ with them; that network of interactions between experts in both companies (Key Account and Supplier). The impact of this is intensified by the diversity of profiles involved.

“Risk Management is most efficient when diversity is maximised.”

So, integrating RM into Key Account Management is a logical next step. By considering Uncertainty, a Key Account Manager will be alert to anything that could distract his team from its objective to remain the #1 Choice of his Key Accounts. The continuous evaluation of Uncertainty factors (such as ‘likelihood and impact’) by a diverse team will ensure decisions support this objective.

Sustainability of Sales in troubled times must remain a key focus. In order to achieve this, companies may need to adapt and take a few key decisions for the short term. The integration of Risk Management and its focus on Uncertainties is aligned with this and will ensure a better understanding by all stakeholders.

As such the dilemma of Revenue versus Margin [R vs M] can be solved by Risk Management [RM]

On your journey to Growth there is always potential to be interrupted by various external factors, like COVID‐19, but you can still remain the #1 Choice for your Key Accounts.

# Risk Management # Key Accounts