Practical Ways to Manage Risk

13th October 2015
Risk Management

Employees are the heart of any business, and so it goes without saying that risk management and evaluation processes should be a priority when planning for the future.

In a survey conducted by the Federation of European Risk Management Associations (FERMA), almost 80% of respondents said that they struggle to keep up with emerging risks, with only one in five feeling “very confident” that they are able to manage them. Julia Graham, the President of FERMA said:

“Risk managers are now expected not just to monitor but to lead, not simply to follow process but to innovate”.

Risk management needs forward thinkers able to spot and prevent potential problems.

Speculate to Accumulate

The banking industry in the US has seen its six largest banks increase their regulatory costs by an enormous 102% in 5 years. Such a large outlay without a tangible, financial return may seem a hindrance to growth. However, as outlined by bankingexchange.com, managing risk and compliance can actually promote business growth.

Not only does it provide a comprehensive overview of the condition of a business, giving a competitive edge, but it removes the need for large scale amendments and restructuring if something goes wrong. Achieving productivity and compliance starts with risk management at a basic and fundamental level.

Tracking and Competence

Errors and potential risks in the rail industry can be particularly costly. Whether they are finance, productivity or health and safety related, being able to effectively track these risks is crucial. ‘Competence’ is the ability to undertake responsibilities and to perform activities to a recognised standard on a regular basis and the rail industry uses competence as a measure of practical and thinking skills, experience and knowledge, and willingness to undertake activities within agreed standards.

railsmart eds 3squared risk management softwareSmart Thinking

3Squared’s RailSmart app features a unique Employee Development System (EDS) which provides rail companies with the tools they need to pro-actively manage and improve their staff’s competence on a regular basis. Employee data is easily accessible and reduces compliance costs, resulting in the better management of resources and an improvement in staff retention.

The way in which employees and resources are managed should be continually evaluated and this is done through competency cycles to further develop competent performance at work. Technology is changing all the time and with each advancement comes new risks. How you manage, track and mitigate these risks will ultimately determine your business’s successes in the short and long term.