All companies, whether small, medium or large, need to consider the challenges posed by uncertainty, inherent in today’s world.

 

Whilst major consulting agencies, like McKenzie, target risk related to geopolitical environments, cybersecurity threats, social media exposure and other kinds of global situation, there are also so called ‘simple risks’ that companies face every day. The real impact of the latter can be easily overlooked and decisions are often taken without adopting a mindful approach.

 

They cannot be handled by Big Data, technical expertise, industry insights or innovative new analytics. Simple risks, multiple and unique, are often disregarded in the belief that the overall business impact is insignificant and therefore insufficient to trigger the financial investment required to engage a large consulting firm.

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The impact of multiple simple risks in everyday business is more important than many people would think.

 

Dealing with such risks does not need an army of experts, it simply needs common sense and a straightforward logical process to be applied. ISO 31000 advocates: Identification, Assessment and Treatment.

 

Identification

 

The number and diversity of people involved in this process is critical. Sometimes, the non‐expert individual, free from preconceptions, may see things differently and generate a kind of ‘wake‐up call’ or ‘eye opener’ trigger for the organisation.

 

Assessment

 

The ‘Four Factors’ (Likelihood, Impact, Velocity and Vulnerability), associated with the structured scoring system, offer a reliable, effective, efficient and proven system.

 

The visualisation within four dimensional [4D] charts provides an easy and simple way to analyse the Team perception of these risks and allows the Team Leader to score the risk.

 

Treatment

 

Treatment is the process of selecting and implementing actions to modify risk identified during the assessment process. Never forget that Risk Management is not about managing risks, it is about taking decisions with risks in mind.

 

The ‘Four Actions’ (Mitigate, Accept, Inactivate, Transfer) provide a well‐defined approach to help the Team become active participants in future risk assessments.

 

In line with the Kaizen approach (Toyota philosophy of small improvements every day, everywhere), this process will not generate a visible revolution in the way a Company operates. It will however transform decisions related to uncertainties, leading to increased reliability, effectiveness and efficiency, with all actions supported by the full Team.

 

The alignment of the Team following the situation analysis, with assessed options and agreed decisions, creates a tremendous positive impact on the company’s success.

 

Where KARccMa can help?

 

The first level to reach is Awareness. Unless something is known, it cannot be considered. KARccMA can deliver Awareness sessions (a few hours) via face to face meetings or online conferencing. Content can be generic or customised, based on company activity.

 

The second Level is to provide Training on the process to be applied. We believe a two day training package provides the best investment to align your team on the approach, utilising exercises to ensure that the added value of the process is fully understood.

 

The Third Level is Consulting activities. Following training, there will be business situations which can be handled independently by your trained organisation, but there may also be certain specific circumstances that require an external eye to ensure clarity and objectivity.