Before we dive into our topic, let us first understand who is a CRO and what role does he perform in a company.
What is a CRO and his role?
A Chief Risk Officer or Chief Risk Management Officer is the person responsible for identifying the potential risks to a business and mitigating it appropriately. Along with managing the risks, CRO is also responsible for the compliance requirements by the regulatory bodies.
Whether the risks are internal or external, the CRO is responsible for managing and minimizing the damage that may be caused by them. Analyzing and taking actions to provide a cushion against the risks is one of the prime tasks of a CRO. Some of the other roles of a CRO include implementing strategies to combat the potential risks, monitoring the results of these strategies, verifying the plans of the business are aligned with the risk management priorities.
Why is it Important to Manage Risk?
Here’s why we think risk management is important!
- Safety – The business can save money and safeguard resources against financial or data security breaches or protect the employees and customers alike, if adequate risk management is in place.
- Stability – In case of financial damage, risk management would ensure the economic and financial stability of the business and won’t let the business run to the ground.
- Steadiness – In case of unforeseen circumstances, if risk management is in place, the business-ship will be smooth-sailing and won’t be caught in the tempest. The productivity won’t be heavily affected.
Now that we understand the ‘why’ of risk management, let us look at the ‘how’. Here we present you with 5 tips from one of the top 10 CROs in India.
5 Risk Management Tips
- Risk Assessment from the Start
Before implementing any of the projects, right at the beginning, risks that are likely to erupt must be noted and provisions should be made to avert them. This should simultaneously happen during the developmental stages of the project. As they say, the sooner you know about the risk, the better provisions can be made to handle it.
- Estimate and Prioritize Risk
During the business, numerous risks will pose a threat to the business. It is then important to determine the extent of the damage each risk is likely to make. Based on this, which risk should be prioritized over the other such that there is minimal damage.
- Plan and Mitigate the Risks
It is important to always stay ahead and be updated about the operations as that helps predict the risks that may arise. In case of risks, ignorance is not bliss as the knowledge of the risk helps the organization be well-equipped to handle it.
- Constant Review and Monitoring
All the strategies and countermeasures that are in place to mitigate the risks should be checked at regular intervals. Changes should be made to stay abreast with the changing needs of the business.
- Learn from Past Mistakes
Even with all the strategies in place, there is a possibility that they might not be able to secure the business against harm. At this point, it is necessary to have a learning attitude and grow from past mistakes.
We at Mantraa are privileged and proud to have one of the top 10 CROs in the fraternity, Mr. Ramakrishna Lakshman, as one of our founding members. So rest assured, we provide sound risk advisory services best suited for your business. Get in touch with us and learn to manage your risks wisely with us.