Doing an efficient risk analysis is of utmost importance for business planning. Through this analysis, we can improve cost control, increase profitability and many other benefits to the company management. A management done correctly enables the sustainable growth of the business over the long term.
To reduce the errors of doing a wrong analysis, we need very well defined and preferably automated procedures. By automating the process, it is possible to promote agility and regularity in decision-making, and consequently increase the periodic results that the company needs to deliver.
However, how to do this procedure? In this article we will look at the importance of risk analysis automation, aiming to minimize errors and failures in order to increase business productivity as a whole. Check it out!
First we need to understand how a correct analysis is done. To this end, we will explore the key steps that constitute a consistent analysis, capable of delivering positive results to the responsible managers of the organization. These steps will be divided into five parts, as explained below.
The main idea is the massive reduction of the risks that involve the enterprise and to do so, we must give priority to the identification of possible threats that may arise over time. The most efficient way to estimate possible objections that might arise would be through brainstorming meetings between employees and managers.
This meeting, held by each sector of the company, is intended to identify possible eventualities that may affect the performance of the area, leading to an unsatisfactory result in relation to the Board’s objectives. It is therefore up to the responsible leaders to make this meeting as productive as possible.
Once the possible objections have been identified, they need to be classified in order to fit them into the workflow of each sector. Keep in mind that there are sectors that are essential to the company’s strategic level and, because of it, have priority in the performance of tasks.
After categorization, it is necessary to keep the focus of decision-making of the impact on each measure that will need to be taken. These measures need to be done in a structured way to generate the best possible results, which makes it one of the most important points of the entire step.
After categorizing the possible obstacles, we must pay attention to prioritization and risk analysis. Once categorized, it is paramount to understand and, especially, to measure the impact each objection may have on the company’s future results.
At this stage, it is worth examining, in detail, how negative each obstacle that may arise over time can be. Accurately estimating the likelihood of each event is also on the list of priorities in the analysis process, and any counterparts need to be worked out so that there is no surprise as to the outcome.
With the risks properly measured, we must deal with future objections. We should start with the risks that are most likely to happen and that will have the greatest negative impact on the company’s possible results. The most effective treatment is one that uses the resources available to eliminate the potential for negative eventualities to occur and to clear possible disastrous outcomes.
The most efficient way is to build a database of past risks, from which it will be possible to more accurately measure the likelihood of the risk to be consumed. These data will provide information that will be very useful in the future, enabling the treatment team to take more proactive measures to address these eventualities.
After addressing the risks, we should monitor the entire situation so that there are no situations that get out of hand. Progress reports should be issued periodically to assess whether the risk is increasing or under control. These reports should have indicators that will assist in monitoring the objections.
The indicators should contain the goals achieved, specific activities and challenges in the execution of the actions. It is crucial to point out that new risks may arise and the analysis process needs to be efficient and flexible so that adaptation to new circumstances can be done consistently.
Now that the entire risk analysis process was properly explained, we can see how important this procedure is to the company. As such, we must be careful when this process is being conceived. Doing all of this manually can lead to analysis errors and undermine all consolidated results. Therefore, we will address the automation of the risk analysis process and briefly go over what LGPD is and how it can assist in these activities.
The LGPD (General Data Protection Law) aims to establish rules for the storage, processing and sharing of private information, placing safeguards and penalties on those who do not comply with it. Sanctioned in August 2018 (effective from February 2020), the law has some requirements that must be met in order to have a legal basis for compliance with criminal obligations.
These requirements are based on the consent of the person, the principle of necessity and the total control of data storage by the user, who may request the removal of information when deemed necessary. Obviously, you need to be well informed about these principles and how they can impact your company’s risk analysis and marketing strategies.
Understanding LGPD requirements raises concern about how to monitor these processes so that there are no legal issues. Constant monitoring of data processing should provide greater security in terms of complying with the law and an improved analysis of potential risks that the enterprise may face in the future.
Because of this, we must constantly seek the best way to monitor consolidated data. This monitoring will allow the responsible managers to have full reliability on the information that will be obtained, aiming at the company’s strategic planning through risk analysis, and will also comply with the applicable legal requirements within the general data protection law.
Therefore, there is a great need to look for possible solutions that meet these two major business requirements. For that, we can mention some measures, such as investment in the data protection structure, training for the responsible team, well implemented governance, and management transparency.
Now keep yourself informed and download our e-Book with the 7 greatest challenges of efficient cost reduction. Don’t miss out!
Request a demo bellow and know what MyABCM can do for your company.
If you are interested in MyABCM solutions and need more information, please send us a message.
