There are important arguments for setting up your risk management as a process. It gives insight into what can happen. It allows you to prioritise risks, after which structured action can be taken. You can make better financial assessments and take measures, and it helps to account for decisions taken.
Man is the problem
Embedding risk management almost without exception encounters an organisation with a problem: people. Management faces risky choices, but this is not always clear to the average employee. Of course, you want to prevent everyone on the shop floor from spontaneously taking risks due to copycat behaviour. So communicating considerations is key! In addition, the importance of risk management must always remain on the agenda, in both word and deed. In vision, policy, communication and by actively asking about risks and putting them on the agenda in board meetings.
Pitfall
Securing risk management is not a top-down 'thingy'. If top management only formulates general policies and distributes a 'risk format' fill-in sheet to managers... you won't get there. Engagement and support are the key words. Employees must be given tools and training to go through the process efficiently and effectively. There must be a pragmatic approach that allows them to make the right choices and set the right priorities quickly. What is justified and what is not? In addition, managers should be able and allowed to explicitly ask what risks might jeopardise the achievement of goals. This contributes to risk awareness and thus to the success of the entire organisation.
