What is risk management?

Risk management , or risk management, has been linked to large companies for decades to minimize the risk in its chain of operation, however technology allows more companies of different sizes to access these solutions to increase business security and in this article we invite you to learn more about it.

What is risk management?

It is the analysis, strategies, processes and actions to mitigate risks within an organization. These areas are in charge of analyzing different scenarios in which the company finds itself, making an analysis, contemplating the risks and evaluating them, and then creating a plan to prevent, mitigate or reduce the damage to the company.

Types of risks

Risk assessors are in charge of rating the feasibility of taking certain risks, be it financial, legal, natural disasters, errors, theft, cybersecurity.

For these types of risks there are documented processes, also known as Contingency Plans, which allow the company to have a matrix of how it will react to one of these scenarios so that business operations can continue.

Risks that can be prevented

While there are some unpredictable risks such as natural disasters or other more complex risks such as an intermittency in operations due to a political conflict, such as war, etc., there are some unpredictable risks. There are other risks that companies can better control:

Cybersecurity:

Companies must have standards and appropriate measures in place to prevent cyber attacks. In the same way, the personnel working in the company must be made aware of the activities that may put at risk both their personal data and the company’s confidential and privileged information.

Risks due to related third parties:

• Capital Humano: 

From theft to reputational risk, poor personnel screening could be keeping your company from reaching its goals and getting into trouble. This type of risk can be avoided from the selection process by implementing appropriate tests for each type of personnel, Background Checks which allows you to know the person based on his or her background.

• Proveedores

Likewise, partnerships with other companies that provide you with a service or supply part of your business may be in legal trouble or may not be complying with regulatory standards, which could directly or indirectly affect your business. Therefore, background research is crucial to seek healthy relationships with other companies.

Regulatory Compliance

In order for companies to achieve new standards that allow them to extend the reach of the business, they often need to comply with International Organization for Standardization (ISO) regulations, which qualify risk management and compliance within the organization.

Process automation

Today, companies are able to automate risk management and prevention processes with different platforms. With BlackTrust, you have the opportunity to automate tasks in the selection process of personnel and suppliers, in addition to knowing their background, through processed data obtained from public databases. In the same way, find KYC services to know the identity of your customers and avoid fraud.

If you have more questions about how to maintain the security of your company through technology, please contact a BlackTrust consultant.