What is Risk Management and What Does it Mean for Your Company?


What is Risk Management and What Does it Mean for Your Company?

Risk management is the process of identifying, evaluating, and responding to current and future threats and opportunities that can impact a business (operationally, financially, etc.). In practice, risk management means looking ahead to identify potential obstacles and prioritizing resources to minimize the cost of unfortunate events. At the same time, it also means positioning your business so that you can take advantage of opportunities that may arise.

Risk management is strategic, multifaceted, and most importantly unique and personal to a business. While some risks, such as safety and compliance requirements, are more proscribed, how a company chooses to build its culture, position itself in the marketplace, and respond to external factors is part of a business’s individual risk management strategy.

A Three-Pronged Approach to Risk Management

At ACTN Strategies we take a multidimensional approach to risk so our clients can have a full picture of their business environment. We evaluate cultural, environmental, geopolitical, physical, and technological risks so our clients can take on change with confidence. Here’s one way to think holistically about risks to your organization.

Internal Risks

Internal risks come from within a company. They can eat away at productivity, impact employee performance, and affect the bottom line. When we evaluate a business’s internal risks, we look at the organizational dynamics at play, such as a company’s culture, the relationships within a leadership team, the relationships between management and employees, and even the technologies and infrastructure a company uses.
When working with a company to mitigate internal risk, we offer a range of services, such as leadership coaching, diversity, equity and inclusion consulting, and technology integration strategies, depending on an organization’s particular concerns.

Operating Risks

When we talk about operating risks, we’re looking at each aspect of an organization’s operating model. We’re working to build operational readiness and resilience to allow an organization to ramp up to seize new growth opportunities or scale back to minimize obstacles and avoid crises.
To mitigate operating risks, we design and implement sustainable improvements to operating models that persist well after our team has left the conversation.

External Risks

External risks are the threats and opportunities a company or brand encounters when it interacts with or is impacted by the rest of the world. External risks can be cultural, they can be security related, they can be local or international.
Effective external risk management requires a holistic strategy that positions a company to capitalize on opportunities or avoid blowback as an organization maneuvers among ever-changing global dynamics.

At ACTN Strategies, we bring fresh perspectives and a dynamic approach to problem solving. We position our clients to handle change, do their best work yet, and Rise to Every Occasion.