One way to Simplify Risk Management
For organisations that operate complex processes involving high energy interaction or exposure risks, threat to life justifiably holds the gravest concern. Comprehensive management of these challenges are critical to ensure that all lines of defence are in place and actively monitored. These are old problems, but when times are tough, managing a range of disconnected tools can be costly, and without enough people in place to manually drive and check processes, small oversights can be catastrophic.
Five steps to risk management
Optimising risk management in the workplace is on the minds of many corporate leaders. The 2016 PricewaterhouseCoopers (PwC) Global CEO Survey found that 49 percent expected significant change in the definition and management of risk. Achieving effective and lasting change isn’t easy, however focusing on a few key delivery areas can simplify the oversight process, reducing the demand via an integrated risk management framework with bowties as the centrepiece.
- Bowties help to identify and prioritise. Before you can assess the potential of a risk, you have to first identify it. Traditionally carried out through hazard identification (HAZID) or hazard and operability (HAZOP) studies, identification involves naming and prioritising the most pressing risks and their causes, estimating potential consequences and recognising the existing controls to prevent or mitigate them.Bowties excel at this as they focus attention on commonly understood pathways of failure.
- Bowties both visualiseand analyse risk.Mapping out the data gathered at the identification stage to generate risk maps is fast and simple, delivering consistent results across the business. This makes reviewing, sharing and follow-up simpler and less dependent on high-priced resources. Bowties shine here – a method of visualising risks that makes them easier to understand, without sacrificing important details. From a simple plotting of cause and potential effect to comprehensive qualitative and semi-quantitative analysis, the bowtie allows an overview from which to incrementally build your risk management maturity.
- Verify and assure. After assessing each risk and identifying appropriate controls, it’s time to monitor and verify that they are in place, supported, understood and managed. This involves communicating the controls to everyone involved, and scheduling regular and optimised verification activities for where they are in use.
- Tracking actions. It’s all very well to devise and implement control procedures, but that’s only half the battle. All actions need to be tracked, and notifications sent to the relevant parties to ensure they are diligently improving the process and your company’s reliability every time.Reminders and escalations complete the circle to ensure ownership of every commitment.
- Monitoringperformance. Every phase of this process can be monitored and performance tracked. Seeing where your organisation has been and how each risk has been addressed and registered is the only way to continually improve risk awareness, culture and ultimately, effectiveness.
The Meercat RiskView method
Where previously each of these steps may have required a separate solution, Meercat RiskView supports all your risk management needs in an intuitive, one-stop, cloud-based solution that can meet your needs now and into the future. Meercat RiskView is helping companies around the world collaborate and help move their organisations forward with confidence.