Investing today to reduce tomorrow’s risk.
OPERATIONAL RISK MANAGEMENT
Operational risk management is the process of understanding and managing the operational risks to which the entity is inevitably subject.
THE BACKGROUND.
Operational risk concerns activities carried out within an entity, arising from structure, systems, people, products, or processes. It is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
In the case of both risks arising from internal and external causes, organizations have a responsibility to analyze the factors, seek to prevent their occurrence, and minimize their impact should the risk become a reality.
Being deficient in risk management while continuing day-to-day operations exposes the organization to potentially very serious damage: whether it is disruption of the production process, property or operational damage, or failure to deliver promised services to customers, these eventualities must be anticipated and averted.
most common challenges
Today, more than ever, organizations operate in a dynamic and liquid environment that requires them to be highly adaptable and ready. This reality is applicable, albeit in different ways, in any industry or category.
Accepting the needs of the market is critical to pursuing one’s goals, but it is only by ensuring business continuity that organizations will have the strength to achieve them.
Many companies struggle to implement risk mitigation strategies and methods adequately across the board: risk management remains the preserve of a small group of managers and is relegated to a few moments of review, which often fail to implement adequate solutions.
As a result, many organizations chase ambitious goals without adequate awareness of the risks–financial, operational–to which they expose themselves. This is evidenced by the increasing numbers and reports of startups and companies experiencing unexpected and sudden meltdowns.
It is imperative that risk management be an integral part of operations.
our solutions
Through our experience, we have successfully applied the 4 steps of the International Organization for Standardization of Risk Management Processes within a model that adapts to the flexibility and adaptability required by today’s environment.
The 4 steps of the process are:
- Context analysis
- Risk identification, analysis and assessment
- Mitigation Interventions
- Monitoring and Review
The training provided to stakeholders makes all the difference: it will enable your organization to activate this model immediately, whenever the context evolves or new opportunities arise.
In this way we ensure that our clients gain important immediate benefits, with respect to operations already underway, and are able to multiply this outcome in the future.
In particular we achieve:
- reduced operational losses
- reduced costs for adjustments and audits
- Early recognition of illegal/disadvantageous activities
- Reduced exposure to future risks
THE IMPACT
Discover the stories of those who have already trusted us to gain greater control over their operational risks
Stratega took part in the consultancy activities for a French newsprint paper manufacturer facing increased demand and operational uncertainties leading to potential losses and inefficiencies. Within a tight timeframe of less than a week, Stratega identified four key areas for improvement. As a result, the printing house achieved a remarkable 20% reduction in operational costs through improved efficiency and supply management.
This article discusses strategies to reduce manufacturing costs, including process optimization, efficiency improvement, and materials and services research.
Risk is inherently unpredictable; the ability of the risk manager is demonstrated through the creation of potential solutions capable of keeping the achievement of the set goal intact.
Empowering others by delegating what another person can best perform by virtue of his or her own abilities, communicating effectively, and making complex decisions.