Risk Management Strategy isn’t just a topic for the boardroom. Risks are a lurking behemoth, ready to undermine your enterprise at any turn. Whether it’s data breaches that spill secrets onto the dark web or workflow bottlenecks that strangle productivity, the consequences of mismanaged risk are nothing short of disastrous. You’ve read the alarming statistics, sat through the eye-glazing PowerPoint presentations, and maybe even faced a crisis or two yourself. But here’s the million-dollar question: Are you truly ready to tackle these challenges head-on?
Meet 1st Reporting, the groundbreaking app that isn’t just another cog in the risk management machine—it’s the gear that makes the whole engine run smoothly. With its potent combination of real-time reporting, customizable forms, and GPS-enabled oversights, 1st Reporting is the linchpin in your comprehensive risk management strategy.
In this guide, you’ll discover not just the ‘why’ but the ‘how.’ We’re not here to terrify you with the risks of the 21st-century enterprise; you’re already well-acquainted. Instead, let’s roll up those sleeves and dive into constructing a risk management framework that isn’t just a checkbox on your annual review but a core competency of your thriving enterprise.
Table of Contents
The Importance of Risk Management
In 2023, we saw no shortage of risks affecting business and enterprise organizations. Moreover, we saw a continuing trend in risks going back to 2018. According to statistics1, the top three risks to businesses worldwide in 2023 are as follows:
|Characteristic||Percentage of Overall Risks To Business|
Of course, these overarching risks to business are not the only types that enterprise organizations face. If we dig deeper into the stats, we find that injuries and illness in the workplace are still significant concerns.
Given the extent to which a single injury can affect business, it’s no wonder that a robust risk management strategy is essential for both small businesses and enterprises alike.
If we review the many factors that affect organizations from workplace injuries, we find that the average cost to corporations per incident is around $120,000.003. This figure is an estimate based on losses due to wages paid for time off, overtime wages to recover production losses, and the many other associated fiscal liabilities.
Considering the losses sustained by organizations when injuries happen, it makes sense from an ROI perspective to have a robust risk management strategy in place.
The Current Landscape: Where Most Companies Fail
Does your organization fall into a failing basket regarding risk management strategy? To know for sure, you’ll need to review the most common pitfalls faced by enterprise organizations. Let’s look briefly at the eight top offenders.
Reliance on Outdated Tools and Processes
Many enterprises still use outdated tools like spreadsheets or generic project management software for risk management. These tools lack the specialized functionalities needed for complex risk assessment and response planning.
Lack of Real-time Data and Reporting
Traditional methods often involve periodic risk assessments, which don’t account for real-time changes. In today’s fast-paced business environment, waiting for quarterly reviews can be detrimental, not to mention the plausible response times.
Insufficient Employee Training
Even the most robust risk management software can fail if employees don’t know how to use it effectively. Poor training can result in inadequate data collection and inconsistent risk assessment. In fact, surveys show that a 28%4 reduction in costs associated with incidents takes place when a business uses a workplace safety program and trains its staff on its day-to-day use.
Risk management isn’t a monolithic field. It’s dynamic, it’s fluid, it evolves. Different sections or departments within an enterprise may require tailored risk assessment and mitigation strategies. A generic approach often misses the nuances specific to each area. That is the reason why having a robust platform, like 1st Reporting’s custom template builder, is critical for operational success (more on 1st Reporting’s solutions later).
Inadequate Communication Channels
Poor communication between departments can lead to disjointed risk management strategies. When one department doesn’t know what another is doing, risks can go unnoticed or inadequately addressed.
Did you know that 97%5 of workers’ task efficacy is affected daily by the impacts of communication? Inadequate communication channels can become a risk unto themselves, impeding your operational success and making hazards all the more dangerous.
Failure to Align with Business Objectives
Sometimes, risk management strategies get developed in isolation from the company’s overall business objectives. This misalignment can lead to wasted resources and processes that don’t offer optimal protection.
Ignoring Soft Risks
While enterprises usually focus on hard risks like compliance failures or security breaches, they often overlook soft risks such as reputation damage or team member dissatisfaction, which can also have substantial impacts.
Workplace dissatisfaction worldwide is one of the biggest crutches of evolving organizations. According to studies6, as much as 85% of the world’s population are dissatisfied with their jobs. Keeping your organization within the 15% guarantees better organizational functioning, a key indication of future success.
Absence of a Feedback Loop
Many companies assess risks and develop mitigation strategies but fail to close the loop. Without mechanisms for feedback and continuous improvement, it’s challenging to adapt to new threats or improve upon existing practices.
Take a critical look at your existing risk management strategy and pinpoint where these pitfalls may be undermining your efforts. Then, consider incorporating solutions like the 1st Reporting app to address these gaps effectively. By doing so, you elevate your enterprise-wide risk management from a mere obligation to a strategic asset.
Introducing ‘1st Reporting’: Your Solution
Okay, a promise is a promise – and I promised to tell you about a critical tool you can use to master your risk management processes. 1st Reporting is an all-in-one solution for managing risk management across departments and distances (and different jurisdictions). Here are a few of the prominent features your organization will find appealing:
- Cloud-based document storage enables easy document and information retrieval and collaboration.
- Form customization so your risk management can evolve to each regulation, each different scenario, and each distinct need. All you need to do is tailor your forms to suit your needs using our powerful form builder and customizer.
- GPS features enable you to track not only when report submission occurred but also where. You can adjust your view in the management dashboard to show a map of your preferred area(s), and it will display your team’s report submissions. The map view is customizable, and you can even filter to see specific types of reports right on my map in the dashboard.
- Custom notifications enable you to respond to risk management concerns in real-time. You can even adjust notification triggers as well as recipients. So, with a simple setup, you can increase risk response capabilities to real-time response capabilities.
- Simple and intuitive controls enable you to train your teams to use the 1st Reporting app quickly. In fact, it’s so easy to use that many will likely be capable of figuring it out in a matter of minutes.
Implementation: Your Step-By-Step Guide
In order to implement 1st Reporting to replace older, inefficient systems, you’ll need to do some minor setup.
- Start your app trial, or you can also book a demo with one of our professionals to learn how you can take advantage of all the features.
- Once you’ve created an account, you’ll enter the onboarding process. It’s a simple process we’ve put together to get you and your team started:
- Set up your report templates and get used to the form builder.
- Set a test notification and submit a test report.
- Invite your team to the app and have them take a bit of time to learn it. Usually, people are able to figure it out on their own in a matter of minutes. If you or your team get stuck, you can always access the app help guides or contact our team for support.
- Update your account settings.
- Integrate 1st Reporting to your existing systems. 1st Reporting works excellent with:
- Microsoft BI®
- Microsoft Teams®
We recommend that you designate responsible individuals to help you set up custom forms for the different jurisdictions and needs of your organization. As mentioned, you must take a bit of time to get things set up, but once done, it will change the way you and your peers think about risk management reporting. You may even want to review your risk management strategies to include real-time response, possible via the 1st Reporting’s custom notifications system.
Considering the cost of risks to business, it would be wise to review your ROI for your risk management strategy. However, there’s more to measuring just safety and risk management strategies return on investing.
One of the ways in which 1st Reporting is helping organizations save (and thus, increasing ROI) is through intelligent reporting features (reportable KPIs).
Within the 1st Reporting platform, we have enabled new users with two primary KPI reports:
- Incident Activity Report
- Report Activity Trend
Both of these reports provide critical data that you can use to make intelligent, data-driven decisions, increasing the value of your risk management strategy.
Your Roadmap to Mastery in Enterprise Risk Management
In an era marked by an ever-increasing array of risks, from cyber threats to team member well-being, a robust risk management strategy is not a luxury; it’s a necessity. I’ve dissected the shortcomings in prevalent approaches, shedding light on the pitfalls that could potentially undermine your enterprise’s hard-earned success.
Enter 1st Reporting—a game-changer in the field, bridging the gaps where traditional methods fall short. With features like cloud storage, form customization, GPS capabilities, and real-time notifications, 1st Reporting is the Swiss Army knife you didn’t know you needed in your risk management toolkit.
Take Action Now:
- Conduct a Risk Audit: Identify the gaps in your existing risk management strategy by referencing the pitfalls outlined in this guide.
- Start Your 1st Reporting Trial: Don’t just take our word for it. Try 1st Reporting for yourself to see how it revolutionizes your approach to risk management.
- Train Your Teams: Ensure your workforce is well-versed in using the tool for maximum effectiveness. A few minutes of training can save you thousands of dollars in potential risk.
- Measure ROI: Regularly review the KPI reports available in 1st Reporting. Refine your strategy based on actual, actionable data, not just gut feeling or historical practices.
Don’t wait for the next crisis to realize the holes in your risk management strategy. Use this guide as a roadmap and make 1st Reporting your co-pilot in navigating the complicated landscape of enterprise-wide risks. Master your risks before they master you.
- Ensuring Business Continuity Through Effective Risk Management
- Mastering Risk In The Field: Your Ultimate Strategy Guide
- Risk Assessment Form – (Free and Downloadable Templates For Every Risk)
- “Top Business Risks Globally 2023 | Statista.” 2023. Statista. Statista. 2023. https://www.statista.com/statistics/422171/leading-business-risks-globally/.
- “IIF Home : U.S. Bureau of Labor Statistics.” 2023. Bls.gov. May 11, 2023. https://www.bls.gov/iif/#:~:text=In%202021%2C%20employers%20reported%202.6,to%20365%2C200%20cases%20in%202021..
- “The Real Cost of a Workplace Injury – Amerisafe.” 2020. Amerisafegroup.com. 2020. https://amerisafegroup.com/the-real-cost-of-a-workplace-injury/#:~:text=On%20average%2C%20employers%20will%20spend,to%20pay%20for%20the%20injury..
- “Safety Program & Workplace Injury Statistics.” 2023. GMS. 2023. https://www.groupmgmt.com/why-gms/education-center/workplace-injuries-safety-programs-by-the-numbers/#:~:text=28%25%20%2D%20Reduction%20in%20cost%20for,that%20use%20workplace%20safety%20programs..
- “19 Workplace Communication Statistics in 2023 – Brosix.” 2023. Brosix.com. 2023. https://www.brosix.com/blog/workplace-communication-statistics/#:~:text=As%20proof%2C%20here’s%20the%20data,regular%20updates%20on%20company%20news.
- ZipDo. 2023. “Essential Job Dissatisfaction Statistics in 2023 • ZipDo.” ZipDo. ZipDo. June 23, 2023. https://zipdo.co/statistics/job-dissatisfaction/#:~:text=85%25%20of%20people%20are%20dissatisfied,with%20their%20professional%20lives%20worldwide..