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Jan 19, 2024
As I could see, most of the organizations are just practicing incident management / problem management but not going beyond. The problem with this approach is they always to try to solve the problems which already exposed. This is more of an post-mortem mindset. As there is a famous saying, "Prevention is better than cure".
Unless your risk management efforts outweigh the problem management efforts, there are very low probability that the organization can come out of the firefighting mode. For the organizations to gain competitive advantage position and to sustain the competitive advantage over long run, they must look into their end to end value streams with an eye of what are the probable failures that could happen and what is the consequence of it when it happens. This has to be done on regular basis meticulously by each of the functions and document a clear mitigation plans and then act on it.
Organizations cannot afford any non-compliances as it creates huge damage for them and to their stake holders / employees even to the nation. Hence It is high time for the organizations to factor the Enterprise Risk management approach in the corporate governance framework and transform their people mindset as this can only help the organizations to identify the gaps / weak links in the business processes on an on-going basis to build strong preventive measures with a proactive mindset.
There is no need of building a separate function in the organization to manage the risks but every individual / function must be self equipped to conduct their risk assessments and build their action plans. Audit committee must make sure that they are factoring the effectiveness assessment as part of their audit agenda.
BODs / advisors must have an agenda to look at enteprise level risks and its probability & impacts in each of the board meeting to ensure the effectiveness of business performance and minimize the potential threats,
Risk management is a must have skill for all functional managers in today's VUCA world and there are many professional training bodies and certification authorities present across the globe. Project Management Institue -(PMI) based out of United states is a most renowned institution provides certifiation / credentials and training on Risk management and offering Risk Management professional certification. This certification is valued very high in the global market. The beauty is, one can take these certification courses and exam online as these exams are protered. We must emphasize this skill set deployment in the organizations.
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About Author
Director
He is a qualified Mechanical Engineer with specialization in production engg and industrial engg with Masters & Doctorate in Business Management. He is awarded with fellowship in Industrial Engineering. Holding various international certifications which includes PMP, DASSM & C-OKRP. Serving on Board for PMI, Chennai Chapter. He is serving for 22+ yrs across various manufacturing Industry segments such as Machine tools, Automotive, Aerospace, Oil&Gas/Power, Motors & Pumps, Electrical & Electronics & IT/ ITeS. across various functions - Production Engg, Industrial Engg, R&D, Manufacturing Operations, Quality, SCM, TQM, Business Process Re Engg(BPR), Project, Program & Portfolio management, Strategic Management, Governance,Risk&Compliance.
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