Threats are no longer perceptions and hypothetical events. The economic, digital, health and soon climate wars are pushing companies to implement risk management procedures.
ISO 31000 is an essential tool to identify potential risks that could jeopardize the achievement of crucial objectives. Indeed, it will help you to determine how to map the risks and those, essential to take into account, to achieve the primary objectives before they affect operational activities.
A risk is a possible event affecting certain processes and having harmful consequences for the company.
From risk to Business Continuity Plan
The contingency plan establishes the risk avoidance or mitigation scenarios that are considered unacceptable for a project. It is a key element of the BCP / BRP (Business Continuity Plan / Business Recovery Plan).
Sincere risk management must provide decision support and an accepted response that is proportionate to threats to the company, its value chains and even stakeholders. This can only be achieved in collaboration with the business departments, which are the only ones able to assess the impacts on their activities. From its external point of view, Eiwler Conseil supports economic actors in this reflection.
A horizontal organization of a risk mapping project is necessary to avoid any redundancy and dilution of energy. The project group is then composed of the departments and can be managed in AGILE mode in a continuous improvement approach.
Milestones in a risk management project
A risk analysis involves a series of milestones helping to clarify the risks identified as well as the management strategies to be implemented to deal with them (acceptance, transfer or avoidance, etc.).
After registering the project for strategic objectives, a scoping note will formalize the project team and the mission (expected deliverables). Once the project has started, the steps will be as follows:
- Identification of potential risks for the entire project;
- Classification by in-depth risk analysis;
- Identification of response measures to the most significant risks;
- Estimated costs and benefits (ROI) related to the measures to be implemented to assess whether they are viable;
- Implementation of these measures;
- Evaluation of the results by feedback and documentation in order to increase the level of knowledge of these risks;
- Include the project in a PDCA approach by repeating the cycle by iteration.