Risk management does not just mean recognizing existing and potential risks and eliminating them. Comprehensive risk management pays for itself quickly, among other things, because it releases money in the right places and helps reduce costs in the long term.
Every successful company pursues the goal of using the available resources optimally and thus generating the maximum income. What does it take? A future-oriented strategy, an idea, a product that is needed or a service that is valued, and precise planning - especially in financial terms.
Improve profitability
Companies that had to change course due to the recent past are especially faced with the difficult task of planning the budget now for the upcoming and the years after. Restrictions will be necessary here and there. But be careful: Saving in the wrong place can have devastating effects. Good risk management helps, in good times, to know what is to be expected for a company and to eliminate or minimize risks through investments. This brings sustainability and stability, considers all damage potential, secures customers through high quality, and improves supplier management, capacity utilization and the order situation. Because: Every damage costs money, time and energy.
Risk management pays off quickly
After five to ten years, latest, investments in wide, efficient, transparent and quantitative risk model pay off in every company. The reason: Risk management „cleans up“. It makes plants safer, increases their service life, improves production quality, regulates interdependencies, cushions risks, consolidate facility and workplaces, guarantees economic efficiency even in challenging times and consequently secures the budget for the next few years. Risk management is therefore a positive spiral that makes a company more resilient with every impulse.
In other words with a quote from Aristotle: „We cannot change the wind, but we can set the sails differently.“ Natural catastrophes or pandemics affect the strength and direction of the wind. With comprehensive risk management, all potential damage is considered, the budget can be used where it is needed, and a company remains on the road to sustainable success.
The entire risk on mind® team wishes you a clear head and good decisions for your budget for 2021. We would be happy to support you in optimizing your budget through extensive and sustainable risk management.
