Every business has to face a lot of hurdles to sustain and grow in a competitive environment. It includes a lot of risks like legal, economic, social, technological, data leaks or theft, geopolitical, etc. Some of these risks can be mitigated preemptively by creating suitable response protocols, contingency plans, and communication strategies with the help of an in-house team or partner with a company that offers Risk Intelligence services. Let’s discuss how to detect and eliminate risks in your business so that there is maximum productivity and minimum loopholes which can hinder progress.
Purpose of using Risk Intelligence servicesWhile risks vary from enterprise to enterprise, the basic purpose of using Risk Intelligence services are,
- Understanding the vulnerabilities and getting accurate knowledge of the business environment
- Defining the risks through risk mapping involves visualising them on graphs or other visual representations. It will help us be alert and mitigate it quickly or create a safety system to prevent it.
- Creating plans to prevent the risks from becoming a reality or effectively mitigating them with minimum damage.
How to plan?Risk Intelligence services can be used across different industries and for different purposes. Firstly, the company needs to establish a basic risk management system to detect and mitigate risks. The following steps will help in establishing such a system.
- Use brainstorming sessions to list all the possible risks affecting your business. For this, involve as many employees as possible since they know the best about the working environment. Don’t rule out anything, as little things can make a big difference eventually.
- After identifying the risks, understand how they will affect your business
- Create full-proof strategies and background screening systems to detect and respond to the risks.
Choose broad and specific topics.The monitoring or search parameters should be broad and specific when it comes to using Risk Intelligence services. Competitive intelligence for risk is different from competitive intelligence needed for other purposes. For monitoring done for the purpose of managing risks, the following topics have to be checked.
- Change in regulations or laws
- Security threats
- Industry news
- Ethical issues
- Cyber threats
- Natural calamities
- Economic risks
- Supplier news
Use of technology and Organized approachThe risk mapping involves visually representing the risks in terms of how likely they might occur. However, you will not accomplish it alone and hence use technology, and an organised approach is the only way forward. While carrying out a risk intelligence project, it is imperative to use background screening and data visualisation tools to keep track of every information you collect. Suppose you can integrate the monitoring system with data visualisation tools. In that case, there is a good chance of finding great solutions for mitigating risks and using the data for future reference.
Deliver Information InstantlySetting a particular amount before taking up a risk intelligence project is crucial. It involves listing all the risks and possible mitigating strategies to eliminate them in a timely manner. We have to make sure the management and stakeholders are integral in this process. Their inputs and experience will be invaluable in detecting and developing mitigation strategies for risk elimination. For example, HR managers need to create a response team in case of employee accidents, violation of any law, or data leak. This rapid response will go a long way in improving the working environment and creating space for the company’s growth in terms of brand value and better employee satisfaction.
An Example of Risk Intelligence in ActionLet’s take an example of an entertainment park situated in a remote area outside the city where millions of tourists and locals visit. Now, let’s take a look at the risks that the company will monitor
- Possible transport strikes that can hamper many tourists from reaching the destination
- The price rise in items used for making food at the company can increase the price of food sold per plate. As a result, it might cause lesser food sales at the park.
- A new park established nearby can hamper the number of visitors to the park, and hence mitigation of this risk is needed by creating some partnership or striking a deal that can benefit both parties.