
Not one person can be a specialist in all areas, so being able to gather different experts together can truly help in identifying all the potential impacts of a risk event. But most importantly, it helps in listing all its potential root causes. These “drivers” should be addressed by proactive measures in order to prevent the risk from occurring. Indeed, avoiding a risk usually has a lesser cost than recovering from a crisis. | Illustration: Review and documentation of the causes and consequences of a risk during a workshop |
Illustration: Inputs from multiple risk experts during a collaborative risk assessment being consolidated and reported to the risk owner | As for the identification, different experts will have different views when assessing the impacts of a risk. An accountant will very much focus on the financial aspect incurred while an operations manager might be more inclined to document the potential disruption in the supply chain. Involving marketing and communications experts in the analysis phase would also enable the organization to capture any reputational impact or change in customer perception that could be experienced. |
Concerning the response strategy of a risk, here again collaboration is crucial. An internal control and compliance specialist will be able to know what controls are already documented and can be leveraged to cover the risk. If none existent, this stakeholder will be the best suited to propose the creation of a new control. Our operations manager from earlier might be the best expert in business continuity for this part of the business. Indeed, some continuity plans might already be in place and can, once again, be used to mitigate the risk. Finally, someone from the insurance department will not only be able to advise on the company’s coverage level, but will also be able to use this information to review the current insurance policies purchased. This optimizes the cost of insurance for the company and also provides better coverage of the risk thanks to adapted criteria. | Illustration: Multiple actions, owned by different stakeholders, combined to create an end-to-end response strategy |
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