Many of the risks today’s companies face are subtle or indirect. It’s not just about competitors or computer hackers anymore. The risks have gone as global as your company’s efforts to serve new, ever expanding, markets.
Let’s take a look at few risk factors you should be on the lookout for:
- Globalization – As you know, supply chains and markets have gone global which means there’s a new set of potential crises, anything from natural disasters, political unrest or even cultural clashes for which you need to worry about… and plan for.
- Outsourcing – While outsourcing may, in fact, reduce the monetary burdens, this “à la mode” management approach also dramatically reduces your control. For instance, from the instant your outsourcing partner suffers a fire or a labor strike, it’s your problem too.
- Single Sourcing – Getting all your manufactured goods from a single source may buy you a better price, it also means there’s no easy alternative in the event this supplier suddenly shuts down.
- Crises – Being located in mainland America means you have little chances of being hit by a deadly tsunami or a terrorist attack but over time, the odds add up so instead of foolishly downplaying those crises your think won’t happen, reflect on the damage caused if any one of them does… and prepare for that.
- Employees Leaving – When employees leave, especially the seniors, their knowledge usually walks out the door with them. Even though their smarts may not end up in your competitors’ hands, these infinitely useful tidbits of information may be lost. Make sure to have a system in place which can capture and share this tactic know-how or risk sweating over the same problems, all over again.
The goal here isn’t to become paranoid about risk management but since so many companies don’t set time and money aside for these matters, now is probably a good time to assess your company’s risk awareness… and preparedness.
Tags: risk, corporate risk, risk management, risk awareness, preparedness, damages, employees, outsourcing, globalization, competitors, computer hackers