All good organisations check and validate the risks involved in various processes.
Risk management is the process of identifying, assessing and mitigating threats to an organization's sustainability and growth.
These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, data security breaches and natural disasters
A methodical risk management plan helps to establish procedures to avoid potential threats, minimize their impact in case they happen and cope up with the effects.
Risk Management helps in reducing uncertainty and helps organisation to meet their goals consistently.
All the quality standards like ISO have made Risk Management as a mandatory aspect of compliance. Thus even small manufacturing units have to implement Risk Management.
Risk Management requires a methodical approach to not only identify risk but to set processes which will help mitigate them. Without a proper tool these are usually done using spreadsheets like Excel.
These systems become tools that are more for compliance sake rather than actual process improvement.
SME companies also do not afford high end software for the purpose. Also there is a hassle of learning and maintaining multiple software.
OurSys ERP has a built-in Risk Management Module.
Risks can be systematically classified based on Risk Category and Risk Area. Further the impact of risk in case it happens is also noted along with symptoms and triggers.
Risk score is calculated based on scores of Risk Impact, Probability of occurance and Risk Detection.
Next it allows to document the response method whether the risk will be avoided, mitigated, transferred or accepted. The response strategy and contingency plan are also documented.
There is an area to add comments with timeline against each identified risk.
Thus all possible risks are identified, assessed and the strategy to mitigate is documented in the software.
The record of Risk Management process is precisely documented in OurSys ERP.
There is two level authentication for risk assessment. This way senior managers can ensure that the risk management is properly done.
The software provides the guidelines to do risk assessment and thus external consultants may not be required.
The software is audit friendly and thus ensures compliance for Risk Management.
Over the years the data of risk management becomes a knowledge bank and is easily available for future managers.
OurSys ERP helps in ensuring that Risk Management is complied with.
The open risks are easily visible thus helping managers to focus on them and mitigate them.
Processes are set in the system and can be audited easily. It saves time to document and the documents are readily available anytime and anywhere.
The knowledge can be transferred quickly across multiple departments and locations of the company.
All this helps in ensuring sustenance and growth of the company. The probability of achieving the goals becomes higher.