Every new problem faced by a business requires management to modify the strategy, while every new growth step needs execution of a new plan. Every strategy or plan is implemented with the confidence that it will take the business forward. Then why do problems occur or disasters happen? They arise due to poor management and the absence of forethought. Any strategy or plan implemented without forethought might pose a series of problems and result in complexities that can boggle even the best expert.
Problems can also lead to disasters, such as financial loss, loss of customer confidence or, at worst, failure of the business. To mitigate the probability of such disasters occurring in your business, it is extremely important to undertake a risk assessment. Business risk assessment is used to identify and measure the significance of a business risk and probability of these risks occurring within a function or specific process. Business risk assessment will ensure that you have plans ready to counter the issues that could crop up, resulting in the success of your business.
Why it needs?
The purpose of risk assessment is to identify the inherent risk of performing various business functions, strategies or plans. Once possible risks to a business are identified, management can gauge their extent and plan the type of controls required to mitigate the risks. Thus, business risk assessment:
• Identification of Critical Assets
• Identification of Real-Risk
• Risk Mitigation Planning
• Emergency Planning
• Reduced Liability
• Reduced Insurance Rates
• Protection of Critical Assets
• Is needed to ensure the success of your project or business
• Helps you plan for extreme events by bringing forth possible risks
• Helps you focus resources to manage probable risks
• Helps control business costs
• Helps strengthen business management
Once you know the risks to your business, you can implement multiple processes to reduce the probability of the risks affecting the business. Conducting business risk assessment will also help develop the edge you need over your competitor, apart from enabling you to improve your brand presence in the market. You can avoid financial losses in your business by undertaking a financial risk assessment. For those organizations that currently publish assessment and development business simulation materials, the idea represents a very clear mindset transition many will be unwilling to make. This leaves a choice between purchasing static materials, which can only be used once for a single unit fee and designing bespoke material in-house, which is massively time consuming.
Today, Risk, Vulnerability Assessments are performed for a variety of people, property, and resources. The following are typical components, or styles you might find in a Risk Vulnerability Assessment.
• Critical Facilities Analyses:-
Critical facilities analyses focus on determining the vulnerabilities of key individual facilities, lifelines, or resources within the community. Because these facilities play a central role in disaster response and recovery, it is important to protect them to ensure that service interruption is reduced or eliminated. Critical facilities include police, fire, and rescue departments; emergency operation centers; transportation routes; utilities; essential governmental facilities; schools; hospitals, etc.
• Built Environment Analyses:-
Built environment analyses focus on determining the vulnerabilities of noncritical structures and facilities. The built environment includes a variety of structures such as businesses, single- and multi-family homes, and other man-made facilities. The built environment is susceptible to damage and/or destruction of the structures themselves, as well as damage or loss of contents (i.e., personal possessions and inventory of goods). When structures become inhabitable and people are forced to relocate from their homes and businesses, further social, emotional, and financial vulnerabilities can result. As such, assessments can indicate where to concentrate outreach to homeowners and collaboration with businesses to incorporate hazard mitigation measures.
• Societal Analyses:-
Societal analyses focus on determining the vulnerability of people of different ages, income levels, ethnicity, capabilities, and experiences to a hazard or group of hazards. Vulnerable populations are typically those who are minorities, below poverty level, over age 65, single parents with children, age 25 years and older without a high school diploma, households that require public assistance, renters, and housing units without vehicles, to name a few. The term "special consideration areas" indicate areas where populations reside, whose personal resources or characteristics are such that their ability to deal with hazards is limited.
• Economic Analyses:-
Economic analyses focus on determining the vulnerability of major economic sectors and the largest employers within a community. Economic sectors can include agriculture, mining, construction, manufacturing, transportation, wholesale, and retail, service, finance, insurance, and real estate industries. Economic centers are areas where hazard impacts could have large, adverse effects on the local economy and would therefore be ideal locations for targeting certain hazard mitigation strategies.
LinksPro work with clients to develop a vision and strategy to achieve their overall business goals. We begin by assessing their company’s current business intelligence and analytics capabilities (people, process, data and tools) relative to their business goals and objectives. We develop a strategy and a prioritized roadmap to achieve those objectives, and a business case detailing the investments, costs, benefits, savings and revenue impacts.