Crystal Ball Theory – Products - Risk Maturity

Crystal Ball Theory – Products

Risk Appetite and tolerance


Risk appetite today is a core consideration in any business. It is Risk Maturities view that risk appetite, correctly defined, approached and implemented, should be the fundamental business concept that could make a substantial difference to how your business is running.

The risk appetite is at the heart of the business and regulators will be asking the board and management for it anyway, if not today, then very soon.

Risk appetite will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control. The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

Risk appetite approach:

  • Far better to acknowledge the complexity and deal with it, rather than ignoring it
  • The risk needs to be measurable
  • Risk appetite is not a single fixed concept, it will be a range of risks
  • Risk Management is an emerging discipline demonstrating the risk capability and maturity of your business
  • Risk appetite must take into account differing views at a strategic, tactical and operational level to be addressed throughout the business
 

Loss prevention in manufacturing environment


The best defence against loss is a series of interdependent programs created by management to identify and control fire, explosion, mechanical and electrical breakdown, and other perils, and to deal with the resulting emergency or contingency.

Risk Maturity will identify which programs are in place already, which are unformal in place and which need to have an attention.

We collect all of them in 19 assessment area, see ill., and deliver an executive summary, a Risk Quality Rating (RQR) for measurement and a recommendations list.

Yet without feedback, it is impossible to tell whether programs have been implemented as management intended.

The effectiveness of these programs must be continuously monitored because the failure of one or more of them significantly increases the potential for loss. External loss prevention audits provide management with a feedback mechanism that allows prompt detection of unsatisfactory conditions and initiation of appropriate corrective actions. In addition to our service we would recommend using Risk Engineers either independent or from Insurance companies to also access the risk based on our tools.

Your benefit by doing this is:

  • No or very limit unplanned breakdowns – you can at any time deliver product/services to your customer on time
  • You can control your working capital and limit the capital used for your storage
  • You will have a strong documentation on your risk, which means a lower insurance premium
The 19 assessment areas
  • Risk Management & Human Element programs
  • Loss Prevention Philosophy, Employee moral and attitude
  • Maintenance & program implementation
  • Building construction rating
  • Plant lay-out
  • Special Hazards of any kinds
  • Storage
  • Boiler and machinery
  • Automatic fixed protection – sprinkler – IT room gas systems
  • Automatic fire detection – Alarm systems
  • Security
  • Water supply for fire fighting
  • Plant design, Capacity, Bottlenecks
  • Interdependency & contingent Business Interruption
  • Business Continuity Plans, Replacements, Sparring
  • Seasonal fluctuations
  • Natural perils, Catastrophe
  • Immediate surroundings

The Loss Prevention will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control. The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

 

Supply Chain Resilience by Crystal-Ball Theory


All the risk you face in your own company, you will also have at your supplier locations.

In addition, you have transportation risks and contractual risks and liability risks – it is tough, what is your risk appetite?

  • What is the acceptable disruption time for a supply to arrive?
  • What are the performance factors on quality?
  • Which resources are available to mitigate disruption?
  • What kind of hazard can be relevant for your business?
  • Do you foresee any financial interruptions (eg. trade regulations)?

Supply Chain Risk will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control. The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

 

ISO 9001 and the like ISO standard risk documentations


Within the basic ISO standards, you need to be able to document risks and how you mitigate risks. This is when you do approval to standards after 2015, eg. ISO 14001-2015.

Risk Maturity CBT offer comprehensive forms and workshops to enable the business to deal with these requirements in a very sufficient way. This can be done even you do not have a full risk architecture of your business.

ISO Risk register will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control. The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

 

Product recall


  1. How does your business act when you face a recall?
  2. Do you have a sufficient damage assessment workflow in place?
  3. Do you need to start a new process every time you have a recall?
  4. Do a recall damage your reputation?
  5. Do you relay on the insurance company task and wait for them to act?

If these couple of questions make some uncertainty, Risk Maturity can add a lot of value to your product recall process, based on our involvement in multiple recall cases across different industries world-wide.

Risk appetite will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control.

The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

 

Business Continuity Management (BCM)


Why BCM? – to ensure that the business has an effective response to disruption that take money out of the bottom line, by an unplanned disruption!

BCM is a holistic management process that identifies potential impacts that threaten an organisation and provides a framework for building resilience and the capability for an effective response that safeguards the interest of the stakeholders, reputation, brand and value creating activities.

Business Impact Assessment (BIA) – is used to determine the impact of an interruption in advance, it could be by:

  • Merges and acquisitions
  • Introduction of new product, process or technology
  • Change in geographical spread of business
  • Significant change in business operations, structure, or staffing levels
  • New supplier, outsourcing, insourcing or other supply chain issues
  • Understand complexity of own business processes
  • Identify single point of failure or identify which loss will occure

Business Continuity Plans (BCP) – is the documentation of the strategies, personnel, and processes used to guide activities during an incident!

The BCP addresses the disruption incident from the initial response to the point at which normal business operations are resumed.

The BCP incorporates agreed upon strategies and provides information, procedures and communications processes for the business continuity teams, the resources for the recovery teams, and the emergency management teams (Crises Management team)

Business Continuity Management will be integrated in your business by our framework that explores this by looking at both the propensity to take risk and the propensity to exercise control. The Crystal-Ball Theory promotes the idea that the strategic level is proportionately more about risk taking than exercising control.

 

Running Effective Risk Workshop


Risk Maturity has an in-depth experience in risk management and can motivate others to solve complex problems in a simple and effective manner. We have been doing risk workshops for many years, but there has always been a red thread in the wishes from our customers. Therefore, we offer this course that takes 1 day and gives participants the tools to work efficiently and purposefully with risk management in your business on your terms.