Ways of Identifying Risk

Some Simple Ways to Identify Risks

Sometimes the most simple way to identify risks for your business is by reviewing your business plan and processes then questioning yourself what are the areas that will go wrong. 

Use the 4Ws to assist you. Ask yourself:

• when, where, why and how are risks likely to happen in your business?
• are the risks internal or external?
• who might be involved or affected if an incident happens?

The following are some useful techniques for identifying risks.

Ask 'what if?' questions

Thoroughly review your business plan and ask as many 'what if?' questions as you can. Ask yourself what if:

• you lost power supply?
• key documents were destroyed?
• your premises was damaged or you were unable to access it?
• one of your best staff members quit?
• your suppliers went out of business?
• the area your business is suffered from a natural disaster?
• the services you need, such as roads and communications, were closed?

Brainstorm

Brainstorming with different people, such as your accountant, financial adviser, staff and other interested parties, will help you get many different perspectives on risks to your business.

Analyse other events

Think about other events that have, or could have, affected your business. What were the outcomes of those events? Could they happen again? Think about what possible future events could affect your business. Analyse the scenarios that might lead to an event and what the outcome could be. This will help you identify risks that might be external to your business.

Assess your processes

Use flow charts, checklists and inspections to assess your work processes. Identify each step in your processes and think about the associated risks. Ask yourself what could prevent each step from happening and how that would affect the rest of the process.

Consider the worst case scenario

Thinking about the worst things that could happen to your business can help you deal with smaller risks. The worst case scenario could be the result of several risks happening at once. For example, someone running a restaurant could lose power, which could then cause the food to spoil. If the restaurant owner was unaware of the power outage or the chef decided to serve the food anyway, customers could get food poisoning and the restaurant could be liable and suffer from financial losses and negative publicity.

Once you've identified risks relating to your business, you'll need to analyse their likelihood and consequences and then come up with options for managing them.

BIfrost Tech Sdn Bhd - Penang Based ERM Consultancy Company. Contact us at support@bifrostech.com

Risk Management for Project Management

Bifrost Advisory Can Assist in Risk Management for Project Management

Risk management is crucial for project management and should be developed in the planning stage of the project. Bifrost Advisory can help develop a risk registry which acts as a central storehouse for all risks identified in a project. The registry provides a structure in which all the underlying problems facing the project team are captured. Necessary actions are then taken to diminish the probability and severity of the identified problems. 

These risks may come from several sources such as: resistance to change, failure to deliver products in time or the pharmaceutical project exceeding the budget.

 Bifrost Advisory can assist the project manager in routinely manage a risk registry during the development programs.  Bifrost Advisory continually adding new risks while reviewing the existing ones. The risk items are appraised on regular bases by the project team so that actions to lessen or alleviate risks can be taken.

 

BIfrost Tech Sdn Bhd - Penang Based ERM Consultancy Company - Your Consultant for Risk Management
Call us for a risk management training for your board of directors to fulfil Bursa's training requirements for directors. support@bifrostech.com

Enterprise Risk Management Training for Listed Company Directors in Malaysia Available At Bifrost Advisory

Malaysia Code of Governance (March 2012) extract :

8 Principles under the New Code (Board Level)

Principle No. 6 – Recognize and Manage Risks

•Risk Management Framework

(Board & Senior Management Team (“SMT”)

Internal Control Systems (Board, SMT and Heads of Department

The Board should determine:-

•the Company’s level of risk tolerance;

•Actively identify key business risk;

•Assess key business risk; and

Monitor key business risk

The Board should be committed to:-

•Articulating the Company’s Internal Control System;

•Implementing its Internal Control System; and

Reviewing its Internal Control System

ERM concept is available just by googling online. Concepts are easy to convey but how do you actually implement ERM ? Bifrost Advisory is able to provide an overview of Enterprise Risk Management and give you a "How-To" step by step guide in implementing ERM at Board Level and Management Level. In addition, the Directors are able to meet the annual requirement of directors' training.

Check us out at http://bifrostech.com/ERM.aspx#.UqE6IdJHLuQ or email yxianteh@bifrostech.com