How to cross your company to safety with minimal losses
Mohamed Helmy.
If you are a company owner, you must believe that developing a risk management strategy and monitoring threats to your capital is a very important necessity.
According to financial expert and tax agent Mohamed Helmy, these risks can come from several sources, including financial uncertainty, legal obligations, strategic management errors, accidents and natural disasters.
Helmy told Emirates Today that there are 5 practical measures to manage risks and pass the company to safety with minimal losses, which are:
First: identifying risks
- companies and risk management departments are trying to know when, where and how risks can affect the future of work, the various sources of potential risks should be identified and known and arranged in order of priority and degree of risk.
The identification of risks begins by examining various aspects of the business environment, including the economic, social and legal conditions in which the business is conducted.
It is good here to involve everyone in this process, so that all members of the work team can submit suggestions related to the risks that may face the work, thanks to this, the circle of possibilities can be expanded, and this teamwork also allows improving communication relations within the organization.
Once the risks are identified, a database should be created in the form of records to ensure that they are kept and referenced when needed. These records can be in the form of a table that includes the type of risks, their source and the percentage of their occurrence.
Second: Risk Analysis
After identifying the most important risks to the work environment, the step of analyzing them comes.
During this stage, each risk is dealt with individually and more comprehensively, by identifying the factors that can lead to its occurrence, the probability of occurrence, the degree of impact and its scope. Some risks may lead to a permanent halt to work, while others carry limited effects.
Third: Risk assessment and prioritization
- After identifying and analyzing the most important potential risks, we move to the evaluation process that aims primarily to determine the level of severity of each error.
Therefore, risks can be categorized based on their assessment, from high to low impact.
Then we move on to prioritizing risk management, of course focusing on what carries the highest business threats.
This step helps to obtain a comprehensive view of the project and to identify the areas of threat that require solutions to address them if they occur.
Fourth: Risk Management -
After the vision has become clear regarding the potential risks, the treatment phase is based on preparing a risk management plan, with developing solutions and forms of interventions that are appropriate for each risk.
In parallel, all decisions taken by the risk management department are written down and submitted to the management for approval.
The solutions differ according to the type of risks and their causes, from here the work team can be involved in proposing possible solutions.
Accordingly, risk management becomes more successful when all of the team's resources are used, and over time the database becomes more diverse and robust, especially in the case of careful preparation of previous risk records.
Fifthly: Monitoring risks -
In all cases, it is not possible to identify all risks in order to develop a plan to deal with them. From this point of view, the process of reviewing and monitoring risks cannot be interrupted.
For example, the lack of stability in oil prices creates permanent risks for companies, which requires monitoring of these prices and their development.
The plans developed or the decisions taken will never be perfect, this means that the risk management plan should be flexible.
The changes that the business sector is experiencing are very numerous and cannot be counted.
Thus, it becomes necessary for the administrative organization of institutions and companies to show a great degree of vigilance and the ability to take urgent decisions in case of emergency
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