Why is it important to look for operational risks first, during the risk management?
Today, almost every business organization follows risk management, irrespective of its scale. The risk assessment will be the first step of any risk management program, wherein the risks will be identified, the impact will be analyzed, and the action against those risks will be planned. If you want your risk management program to be foolproof, then you should look for risks at the operations level. Whenever, an organization is posed with a risk, normal tendency is to look for risks at finance levels and strategy levels; operations department is forgotten most of the times. But, it will always be here, where the problems or flaws will be hidden. Thus, it is Operational Risk Management, which is more important than any other forms of risk management.
Operational level is the granular level of any organization, and if you get things right at this level, the chances, of you being posed with the risks at other levels such as finance, strategy, and security, are very low. Assessing the risks at operational levels, demand more patience, time, and analytics, because it is hard to detect the risks at this level, with simple assessment techniques.
If you are not aware of the different assessment techniques for the operational risks, you should consider taking risk management courses, which give you a clear picture of the risks that are associated with the operations and different methods to tackle them. Operational risks are more dangerous than any other risks in an organization, and the damage control is also very difficult in serious cases. So, with the operational risks, you should always consider risk avoidance. Regular assessments will help you foresee the potential risks, against which you can plan the preventive measures in earlier stages, and safeguard your company?s goals, objectives, and assets.…