It is important to realize that tough times are simply part of any business cycle. One needs to plan for inevitable down times and have comprehensive risk mitigation strategies. These downtimes could be as a result of increase in raw material costs and/or logistics as well as changes in Government rules and regulations. Other contributing factors can include higher taxes, rising costs of employee benefits or changing regional, national or global economic environment.
Remember: when life gives you lemons, stir up a treat!!
Business Continuity along with Succession Planning are essential. But their key limitation is that they mainly look at how to maintain the current business workings in a disastrous event.
Risk Management on the other hand ensures that we identify, mitigate and manage Risks, so that our business can sustain (if not thrive) even in extremely adverse situations.
By mitigating potential ‘risky’ situations, we can lessen their occurrence probability and of course by managing risk, we can ensure that we are correctly evaluating all the associated impact and liability that inadvertently ensues- so that we can correctly include these projections within our business costs and profit forecasts!
Risk Management can be implemented to develop contingency plans and prepare for any eventuality. Controls that are put in place to avoid/mitigate risks may not show immediate returns but do go a long way to increase profitability and maintain brand value.
About the author:
Sandhya Bhat MSc, CSSMBB, CSSE is the Knowledge Expert & Lead Editor for Macro2Micro Learning portal. You can read more about her work by visiting her website. You can engage with her via our contact form.
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Transformation requires that we first develop proper strategy and policies. Then follow them with good implementation. World Economic Forum success story of Costa Rica's sustained transformation- with rivers and fresh water bodies drying out across many regions in the world, it is more important than ever to protect vegetation and environment.
A great example of transformation that we can learn from and utilize while building sustainable- growth and environment friendly corporate strategies...
Read the World Economic Forum article: Costa Rica has doubled its tropical rainforests in just a few decades. Here’s how
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Throughout my career I have been called in to resolve situations where the client initially thought that the project was going to be just a breeze and as they started working on it (and usually after blowing up quite some cash), they realize that they should have better planned it!!
Yes, it is very true that resources cost money, but inefficiency costs even more and not just money, it also causes frustration. This in turn typically leads to negative sentiments between team-members and stakeholders and organizational discontent. Over time, such repetitive failed work efforts ultimately lead to Employee Disengagement.
Sandhya Bhat MSc, CSSMBB, CSSE has developed several new (under patent filing) and enhanced existing strategic methodologies to improve technology and human capital utilization, produce greater ROI on investments and streamline service delivery. She is an acclaimed author, speaker, a sought after thought leader and an avid world traveler.
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As they say every leader is an avid reader. Here are top ten books that every CEO and aspiring CEO must read to develop their leadership skills. It does not matter if you are a seasoned leader in your field or a person aspiring to steer their career in that direction, if you have not read any of these top ten recommended books for CEO (Chief Executive Officer), then make it a point to pick one (or all) of these books up today. Watch on...
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