iFACTS on - Risk Management

Risk management used to be equal to insurance and loss prevention. Today it is a completely new arena where Risk management is responsible for ALL risk. Business scandals such as Enron, Worldcom, Parmalat have put focus on corporate governance, an important control instrument is Risk management. The logic is clear - stakeholders do not accept companies not reaching objectives or losing any type of value. That would negatively impact the investment.

So, the challenge for Risk management is to make sure the company reach objectives and not lose value in any way. Bearing in mind that Risk management used to be Insurance only and that the organizational power probably still is tuned in with that mission - who would take on that job? 

In all fairness, Risk management is not really responsible for all risk. Risk management is responsible to implement the Risk Management Process with methods, tools and reporting. Never the less, the challenge is vast. Making sure that objectives are reached and that no value is lost -many aspects of the organization need to be controlled. For example: Projects - IT - Patents - R&D - Customer relations - Sales - Production - Strategies - Financial  assets - Embedded systems - competences - contracts... [and many more]

Now, think of all the things that could happen affecting corporate assets and activities: Key personnel leaving for competitor - USD down 30% - Major customer acquired - Accident - Injury - Strike - Tropical storm - IT-virus... [Feels like an endless list!]

iFACTS provides a structure and systematic approach to all this. The bad things will probably still happen, but hopefully you are better prepared, can see it coming early on, maybe already have seen vulnerabilities that are taken care of. All together being better off than your competitors.

This new meaning of Risk management has turned the world upside down when it comes to risk definitions. Many agree that there is a lack of Risk management best practice. Using the iFACTS concept and software means crossing the organizational borders in order to identify all organizational assets and activities in one systematic approach.

Can it be done?  Yes - because it is all about one thing: Achievement of objectives!

Read more about the iFACTS Risk Management software.