By understanding the concept of risk management, it is easy to understand the importance of this discipline. In other words, the benefits are obvious and there is basically no harm.
Ultimately, it is a task of continuous improvement.
But in practice, how do you identify the benefits of good risk management? We have separated some points for you to understand, check it out!
Helps identify problems
The first and most important benefit is that risk management planning makes business issues more transparent.
This visualization capability is often what helps companies deal with situations that could be detrimental to them.
There is a lack of understanding about problems and failures, in order to identify them as soon as possible.
If you understand a little about industrial concepts, you will know that there are several maintenance philosophies, including preventive and corrective.
The first refers to a series of practices and actions that aim to prevent the appearance of defects, as well as identify them at their source.
The second simply seeks to correct the problem… after it occurs.
Obviously the best strategy, from the point of view of portugal whatsapp data reducing costs and optimizing the operational routine, is preventive maintenance, right?
The same thinking can be applied to risk management.
Reduce costs with corrective actions
Good risk management therefore ends up reducing the costs of corrective actions – after all, problems are prevented, rather than the company simply waiting for them to occur.
It represents a huge relief for the organization's cash flow, allowing it to balance its financial health and, among other things, increase its profitability.
Facilitates decision making
Have you ever found yourself in a whirlwind of problems and felt stuck not knowing what to do? This is due to a lack of transparency in understanding the problems.
It is difficult to act when you do not know the problems or their consequences.
This is why good risk management is so important: it facilitates decision-making , making it more effective.
Increase customer satisfaction
And finally, what usually stands out in the market is an operation without recurring problems and that knows how to control its own risks and overcome obstacles.
This is good not only for the organization, but also for consumers, who receive more attention throughout the customer journey .
Are all risks equal?
To understand which points can negatively impact your institution, it is necessary to distinguish the types of risks: those that can be prevented, strategic ones and external factors. They are:
External risks : those that cannot be controlled and include political-social issues, natural disasters, etc.;
Strategic risks : those that the company knows and assumes. In a certain way, they are risks that can be controlled or evaluated,
Risks that can be predicted : one must consider those that are inherent to the day-to-day operations and processes carried out by the company. They can be strategically identified and eliminated for the proper functioning of the corporation and to prevent noise or significant damage to the company.
Risks can involve financial, strategic, operational and even human losses.
These are situations influenced by several factors, such as poor decision-making, incorrect use of a tool, or even inexperience with a function or device.
In addition, risks may be inherent to a business's strategic planning, such as a lack of vision about the future of the market, which may lead to the brand becoming more complicated when faced with competitors and new players.
Financial risk
Financial risks are the most identifiable issues that apply to all types of businesses and have to do with uncertainties related to cash flow.