Companies without a risk management strategy are vulnerable to disaster, where problems that were foreseeable deal a blow to profitability and even the organization’s existence. Proper risk management programs can help a company save time and money during internal and external audits. For companies regulated by governing bodies, risk management might be a required component of doing business by protecting things like public health records, financial statements, and consumer data.
In developing a risk management strategy, a company should follow a three-step process. The process kickoffs with working meetings that analyze business risks to discover the ones that pertain to the way the company does business. Once these risks have been identified, the company must try to quantify them by probability and extent of damage. Lastly, the company must develop a plan to manage and protect against each viable risk as well as developing a plan to mitigate consequences if the potential harm occurs.
A risk management initiative begins with an intensive look at a company because each organization is different. As important as risk management is to the success of the company, a program that is overly burdensome can negatively and needlessly hurt the bottom line. If a company is having trouble knowing what risks to focus on, they can reach out to professional consultants to guide them in the process. These consultants can help an organization create risk assessment groups of key stakeholders and business process owners.
Once these risk assessment groups have identified the specific risks to a company, they create a matrix of the probability of each risk combined with the impact on the business if the risk occurs. The higher the score, the more resources must be allocated to avoid and mitigate the risk. For example, risks that are likely to occur and would have extreme consequences if they did get the most attention. Conversely, low level risks that would inflict very little harm can be put on the back burner.
By assigning each risk to a business process owner, a company can assign responsibility to individuals, ensuring they get the attention they need. Without personal ownership, the risk can be forgotten and sneak up on a business. It is these business process owners who have the expertise needed to define an effective risk management strategy, ensuring that a mitigation plan remains relevant.
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The stark reality is that selecting the right ERP system for an organization is not enough. Most projects get derailed not by the wrong software, but because implementation bogs down and fails to deliver on the promises and capabilities of the ERP solution. How does an organization get from here to there, whether that be from current workstreams to streamlined processes or from disparate software systems to a unified ERP solution? Change management. Every IT and business process improvement initiative should have a change management strategy to dramatically increase the likelihood of success.
Make no mistake, Microsoft Dynamics 365 is a powerful business platform that has the potential to give a company the competitive edge it needs in an increasingly demanding marketspace. In making the most of Dynamics 365, an organization can turn to an approved business partner who provides all of the Dynamics 365 platform capabilities including traditional ERP, CRM, BI, IoT and more. Finding the right partner can make the difference between an adequate Dynamics 365 implementation and one that boosts profitability and customer satisfaction both now and in the future.
Whether it’s an organization that was built through acquisition or one that expanded rapidly into new markets, a business with multiple divisions is ripe for improvements that come by unifying operations under a single ERP solution with the power and flexibility to streamline processes and improve profitability.
Done right, the mobile strategy for an ERP system turns every device into a mobile workstation, bringing the power of ERP to the users whenever and wherever they happen to be. An effective mobile solution saves time and boosts productivity in several ways. Not only does it allow users to interact with ERP data remotely, it also increases the employee’s investment in their work by allowing them to interact with that data with whichever device is most preferable to them. The user does not need to interrupt their preferred workflow to switch to a traditional workstation, minimizing downtime. In addition, users can coordinate with other mobile users, creating an on-the-go team that does not need to operate in the same physical location.