Source:- LinkedIn, Author Rafaela Mendes
A lot has been written and said about the benefits of Risk Management on the Internal Control and how it is important for governance. However, the impact of Risk Management on business strategy is a topic yet to be broaden.
As managers get more familiar with Risk Management, other perspectives start to grow. Moreover, questions’ regarding the possibilities of its usage becomes a natural path. Through my latest experiences, I am comfortable to say that, yes, Risk Management can be a proper tool to boost results and bring an organization to another level.
Through Risk Management it is possible to better understand the implications of each process, approach its uncertainties as well as its root causes and impact. With this acknowledgement one can settle strategies, redesign process, optimize executions and strive for excellence with a cost-effective approach.
Besides generating a profound understanding of business processes it allows managers to take advantage of opportunities that would not be identified without Risk Management assessment.
Having a wide range of information on hand can simplify managers’ decision-making process and enhance its accountability. Consequently company’s environment tends to become more reliable and its work processes more efficient.