How confident are you about your company’s risk management?

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Let me say at the outset that if you already believe you have a rock-solid risk management system and watertight business continuity plans, this isn’t for you.

There are dangers to overconfidence in anything. This is especially true when it comes to risk management.

The landscape for businesses has changed considerably over the years. Technology, political systems (or lack thereof), civil unrest, failing infrastructure, and new forms of Internet crime have added to the complexity.

Let’s think about business operations a few decades ago. Manufacturers didn’t have to deal with continuous power outages that would harm their operations. State-owned transport systems worked around the clock. The Internet wasn’t around. Cybercriminals sounded like science fiction. Local municipal services were robust. Municipalities had fire engines, trained staff to handle emergencies, and maintained equipment with pride.

The changed political environment has done away with services that were taken for granted. This has made businesses from manufacturing to mining more vulnerable.

Already, we have seen how the power cuts have damaged business confidence and hit the bottom line of all sorts of companies. There doesn’t seem to be any end in sight. Appointing a minister of electricity with no plan except a loudhailer and lots to say, doesn’t seem promising.

It’s really the responsibility of a manager to decide whether to review their company’s business continuity management system and disaster recovery plans. It’s not up to a consultant. The consultant can advise, but the manager has every right to reject advice and not do anything.

Managers who believe in continual improvement will review and test their business continuity plans. They will review risks and resources.

It won’t be a big effort, but it will be willingly done because they are aware of the consequences of neglecting to review their operational response in the event of a major or minor disruptive incident.

#businesscontinuity #riskmanagement #technology

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