RISK MANAGEMENT TRAINING
FOR YOUR ORGANIZATION
FOR YOUR ORGANIZATION
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Types of Risk in OrganizationsNo matter the type of business, there are always risks that come along, and some are more detrimental than others. When it comes to managing risk, it’s important to know about the different kinds of risks that an organization can face.
- Economic risk – With every passing day the economy changes as markets shift. It’s important to monitor the market and plan for economic boons and downturns.
- Financial risk – Money is at the forefront of every organization. Financial risks can also be categorized as internal or external and include unexpected costs, employee turnover, rent increases, taxes, cash flow, and credit.
- Operational risk – This refers to day-to-day operations and what internal, external, or combination of factors could affect those. Examples include a natural disaster, property damage, server outage, and loss of power.
- Compliance risk – From the Occupational Safety and Health Administration (OSHA) to the Environmental Protection Agency (EPA) to state and local laws, companies face many regulations they must comply with.
- Security risk – As more business moves online, it’s important to manage and protect personal data from hacking attempts.
- Reputation risk – There’s always the risk that an unhappy customer or disgruntled employee can leave a bad review, or that a product fails to meet expectations. These can lead to negative press and even lawsuits and, in the end, hurt an organization’s reputation.
- Competition risk – Competition is always a risk. Competitors may be offering better solutions for your customers, so it’s important to stay on top of their products and initiatives.
A known risk is a risk that has been mentioned by a stakeholder or an employee. It could have been mentioned in passing or by an industry expert and should be analyzed and documented.
An unknown risk is one that isn’t known so it is unable to be managed, such as weather or a sudden death.
An unknowable risk is a risk that no person is expected to foresee. Examples include system failures or a market crash.
Risk Management Content LibraryOur risk management courses are thoughtfully crafted to cover various aspects of risk assessment, mitigation, and crisis management. Whether you're seeking to expand your understanding of risk management principles or need specialized training in crisis management, we have you covered. Our comprehensive content library provides access to up-to-date resources that cater to your specific needs.
How Poor Risk Management Can Affect BusinessWhen risk is misunderstood, mismanaged, or ignored, there are numerous consequences that can greatly affect business operations.
Projects can become delayed. Unforeseen risks can slow projects down as workers need to analyze them and begin to develop a plan to move forward. This wastes time and could cause a decrease in the project’s overall value.
Not properly planning budgets is a large factor of poor risk management. By not accounting for and identifying probable risks, budgets can be overrun easily.
Customers and shareholders don’t want to be part of something that is seen as high risk. They’ll want information up front to ease their concerns, and information about backup plans and contingencies if things go wrong. If they aren’t given that, they could become unhappy and take their business elsewhere.
Even if you have a plan in place, there is the possibility that the employees won’t buy into it. Not following an established process or using the proper tools will result in a poorly managed situation where risk is involved.