
What is risk management?
March 31, 2022
What is KYC and how does it prevent risks in your company?
April 29, 2022We have previously talked to you about what risk management is, how it works and why it is a fundamental pillar for companies. This time we will tell you about the role that SMEs play and how having a culture of risk prevention is fundamental for a business to grow.
Starting a business is not easy, you have many things against you at the moment of launching a business and, even if a business has a good investment, starting it up always depends on market factors, production, objectives and capital recovery in a certain period of time. The latter is one of the main priorities for the company to survive and not close down.
With these priorities, SMEs focus on the operation, sales and other fundamental elements for the business, however, risk management must also be a pillar, both for companies and for all businesses, since adopting a proper culture of risk prevention and putting in place strategies and plans to maintain safety and deal with adverse scenarios.
Advantages of SMEs implementing risk management processes:
Cost reduction
Optimizing resources is the primary objective for any company, regardless of its size or trajectory; however, for small and medium-sized businesses, reducing costs is crucial to extend the business and maintain its stable operation, since an unforeseen risk can be serious, since something that a large company could easily solve, would be a strong blow for SMEs.
Process automation with digital tools
One of the most effective ways to reduce risks is through process automation, as this reduces the margin of human error, improving repetitive tasks that require constant and objective attention and allowing professionals to focus their talents in other areas, concentrating the best of their expertise.
Early risk management
In addition to automation, another very important factor for risk prevention in SMEs is learning to develop strategies to contain and overcome adverse scenarios in a timely manner, establishing action plans that are feasible for their execution, minimizing losses, reputational damage or any other unexpected threat.
Best talent
It is important to always take into account human capital in risk management, since it is often here where many risks can arise, such as theft, corruption, bad image and tension in the work environment. To avoid these problems it is necessary to introduce digital tools such as the background check from the selection of candidates that allow you to verify the background and information necessary to create a profile of the candidates and thus make decisions that benefit your business and avoid risks.
Faster achievement of quality standards
By taking care of risk management from an early stage, in compliance with national and international regulations, small companies begin a path that will allow them to have more reach in the market.
If you want to know how to implement the most agile background check tool in LatAm, contact us and an executive will contact you.