|That position has changed. Businesses are now taking a more integrated approach to risks, incorporating business risks into every element of decision-making. It has become formalised and quantified, so that rather than being a subjective term, there are consistent methods within the company to identify and measure the level of risk.|
DHi offers a 2 day course that takes you through our Risk Management methodology. We divide the population of risks into five main groups :
- Strategic - risks of plans failing - poor acquisition strategy, changes in consumer behaviour, political regulatory change, hostile acts by competitors, forced obsolescence.
- Financial - risk of financial controls failing
- Operational - Risk of human error or omission - design mistakes, unsafe behaviour
- Commerical - supplier failure, lack of legal compliance, loss of key executives
- Technical - risk of assets failing - fire, explosion, equipment breakdown
Working with the Risk Management team, we will explore what your company's appetite is for risk. Is the risk consistent with the company's current philosophy ? With investors' understanding of how much is at risk ? With Management's skills and experience ? How to manage decision makers who are 'risk overse' or 'risk seekers'? With the company's cash flow, debt position, balance sheet strength.
We can work with the Top management team to ensure that risk is properly accounted for in the Corporate Business Plan and the Policy Deployment process.
Risk Management is also an essential part of a Hoshin Kanri management system. We may be doing everything right through the rigorous use of continuous improvement concepts but all of that might be to no avail if an unseen risk becomes a reality.
This is amply described both in our work on Risk Management and in David Hutchins new book Hoshin Kanri - The strategic approach to continuous improvement