Identify, analyze, control & reduce risks, ensure compliance, minimize the effects of unforeseen events and obstacles
Be prepared when unforeseen situations arise!
- Identify and manage risks that may prevent you from reaching your goals
- Reduce risks that may prevent you from carrying out operations effectively or in accordance with current regulations
- Manage organizational risks, regulatory compliance and project risks in the same solution
- Visualize risks in matrices and governance models adapted to your needs
- Assess and evaluate risks and follow up development over time
- Allocate responsibilities and create action plans to minimize the negative consequences of risks
- Familiarize yourself with the outside world and the decisions that can affect your organization
- Manage risks in the office, away or at home just as effectively
- Simplify collaboration and communication both internally and across functional boundaries
Cleerit makes risk management, governance and compliance easy by providing easy-to-use interconnected risk registers and assessments. You can assess the risks for the entire organization or for your specific unit, and link them to operations, projects, processes and goals. You can also implement and monitor risk reducing measures for identified risks in order to minimize their negative consequences.
Don’t be unprepared, prevent difficulties with Cleerit!
More about risk management, regulatory compliance and internal governance & control
Why is good risk management important for my organization?
Risks and unforeseen events can prevent you from achieving your goals or negatively impact your activities.
Many organizations find it difficult and time-consuming to perform risk analyzes, and therefore they often do not get the priority they should have. As a result, many suffer from unexpected negative surprises unnecessarily.
An important step in a planning process is therefore to identify which risks may prevent your organization from achieving its goals or which may have a negative impact on the operations.
A risk is something that can cause damage, an unwanted situation or other negative impact if it is not taken care of before it occurs. In other words, good risk management makes it easier to achieve your goals and keep costs down.
With the help of a well-thought-out risk analysis, your organization gets an overall picture of its most important vulnerabilities and challenges, which is important in order to be able to prevent and manage these in the best way.
Effective risk management thus secures both operations and quality improvement work, and has a positive impact on the organization’s goodwill and environmental profile. In collaboration with other actors, risk management also creates preventive measures that are needed to achieve and maintain a safe society.
By doing a risk analysis, your organization is prepared for situations that may arise – everything from equipment deficiencies or technical problems, to theft, personnel illness, supply interruptions, operational disruptions, insufficient financing, natural disasters and crisis situations of various kinds.
The risk analysis can also mean getting acquainted with how changes in the current world and the agenda for political decisions can affect operations.
How to carry out a risk analysis in 4 steps
The purpose of a risk analysis is to identify and evaluate risks, understand the causes of these and develop measures that eliminate or reduce the risks, or mitigate the consequences of adverse events.
The risk analysis is a process that can be divided into four steps: examine – risk assess – mitigate – control:
- Examine – Start by gathering information and identifying potential risks.
- Risk assess – Evaluate the identified risks based on how serious they are and decide how you want to handle them.
- Mitigate – Design action proposals and evaluate what effect the measures could have and what resources would be required. Then create an action plan and implement the planned actions.
- Control – Ensure that measures have been taken and evaluate whether these have had the desired effect.
Identify risks and evaluate them based on how serious they are
Identification of risks (or damage events) is one of the most important steps in carrying out a risk analysis, as the content of the analysis is then defined. Risks that are not identified are also not analyzed, which in turn leads to them being undervalued and the need for safety-enhancing measures being underestimated. Important safety precautions can even be completely overlooked.
The next step is to evaluate the risks you have identified based on how serious they are. Questions you can answer are:
- What would these events mean for our organization and operations?
- What resources, assets, goodwill would we lose in such an event?
Then evaluate the risks based on how much impact and consequence they would have on your organization if they occurred, and make an estimate of how likely they are to occur. The impact and probability assessment then forms the basis for calculating the risk value.
Last but not least, create an action plan to reduce the risks
With the help of the risk value, you can decide which risks you should prioritize and try to prevent them as far as possible, or preferably eliminate them completely. If the risk cannot be completely prevented, you can think about how you can reduce the effect of it if it still occurs.
The next step in a structured risk management process is to develop an action plan with concrete resource-based activities, ie. control measures, in order to manage the risks that have been identified during the risk analysis, and in particular risks that have a high risk value.
The plan should ideally include preventive measures that minimize the risk of high-risk situations arising. The goal is to eliminate risks, reduce the probability of a risk event occurring and reduce the impact of the risks on the organisation’s ultimate goals. It is also important to understand the type of resources required to manage the identified risks.
Risks that are accepted and monitored should also be included in your action plan. Before deciding to accept a risk, ie not to take any further action, it is important to make an impact assessment to analyze the consequences of that decision. Although it is not always possible to do anything to prevent the risk, you can prepare with the help of a contingency plan that simplifies the management of the negative consequences.
Once the measures have been identified, the responsibility for these measures should be allocated. It is important that there is a clear and shared understanding of what needs to be done and why, as well as who does what, when, where, how and at what cost.
Thereafter, the measures should be planned, implemented, monitored, and adjusted if necessary, in a structured action plan.
With Cleerit, risk management is easy
With Cleerit, managing risks will no longer be time-consuming and complicated, and you both secure your operations and the quality improvement work.
Read more about how effective and relevant reporting can help you turn your strategies into reality.