When did you last hear your business R.O.A.R.?
Reputation, Operations, Assets and Revenues.
R.O.A.R. the Fundamentals of Risk Management
What is it that these four simple words, which make up the ROAR risk management system, have in common? The answer is RISK.
Risk Management is a Key Success Factor
“It’s not because things are difficult that we dare not venture. It’s because we dare not venture that they are difficult.” — Seneca
When was the last time you considered your business risks as they relate to the pillars supporting your success?
The potential for a risk to occur creates a business appetite for mitigation. There are no ‘there-there’ scenarios for the Business Owners who thought “these risks won’t happen to our business.” They will simply starve to death due to mitigation under nourishment.
Organizations are not built to empathize with competitor businesses in trouble, it’s a tough world. Let’s be clear; a RISK is something that has not yet happened BUT might, versus an ISSUE which is something that HAS happened and you have to react. Or not, if you see burying your head in the sand a safe option…
Risk Awareness with Six Factor
“Test fast, fail fast, adjust fast.” — Tom Peters
Six Factor is a proactive risk aware company. We embrace and absorb the positive energy that understanding the risks create to gain competitive advantage. We do this in a structured and practiced way. We define risk in business, as the measure of stakeholder appetite towards digesting external and internal changes affecting daily operations. By external, we mean the things you can’t influence; world peace, global economics, competitor moves etc. and internal as the things you can control and influence; staff morale, customer satisfaction, profitability and business growth.If good risk management is an ongoing business need, then security practices are the solution addressing that need.
While we have your attention, let’s be open! In our view, at Six Factor we see security as not the means to the end, as some might have you to believe, it’s more the response to the critical need. We view security as a business solution, addressing the need to feed an organization’s risk appetite. There is no point serving up a five course meal, if all you want is a healthy sandwich. It’s amazing how many get this simple equation wrong.
Key Types of Risk
“Necessity is the mother of taking chances.” — Mark Twain
So what are the key types of risk you need to be sighted on and where can Six Factor help you R.O.A.R. against the challenges each of them may incur?
- Reputation risks; are about your customer’s perception of you, your products and services and how you handle situations when things go astray. It’s based on their understanding of WHY they went astray.
- Operational risks; are about maintaining effective business continuity with contingency plans when external (uncontrollable) events and or internal (controllable) events occur. These are risks as they relate to your people, your organizational practices and the information and toolsets you use to conduct business.
- Asset risks: are about your organization’s ability to maintain a healthy and safe operational status through your maintenance and improvement plans designed to protect the processes and systems that produce the image, products and services of your business.
- Revenue Risk: is about understanding your ability to balance the previous three risk types so your organization remains conscious and aware as to where the next challenge and invisible threat may come from.
R.O.A.R. with P.R.I.D.E.
“Go out on a limb. That’s where the fruit is.” — Jimmy Carter
Beyond the foundation of textbook risk methodologies, we at Six Factor encapsulate a pragmatic practice to help organizations successfully manage their risks and avoid issues. We achieve this by building an Organization’s risk mitigation action and education plan based on three insightful questions.
- What is the organizational trust model that informs its risk appetite?
- What is your state of communication readiness for mitigating a risk that occurs?
- What education in proactive risk management exists in your organization to stop mole hills become mountains?
By showing you how we apply our simple action driven P.R.I.D.E. approach (Practices, Risks, Issues, Dependencies, and Expectations), we help you gain a firm grasp and insight into the potential challenges your organization faces and the action driven plan to maintain a healthy operational status during internal or external threats.