Do you have the confidence in your risk analysis to make a critical decision on your strategic assets?
Do you really understand how your decisions impact your company’s financial performance? Are you harnessing the immense potential of your company’s knowledge and experience to monitor risk? Wouldn’t your business unit performance be vastly different if you understood the information from a risk/reward perspective?
If you don’t accurately understand the risk of your operation, then your business is effectively running a marathon wearing a blindfold
It is imperative to consider the gap between how important a risk is and how well it is being managed. A gap between the two may indicate room for improvement and/or that the risk is currently under-managed. A risk can also be over-managed, in which case resources could be allocated to more important issues. Over-management of a risk may be the result of a conscious decision by management to, for example, protect the brand or reputation; however, it is usually a relative over allocation of resource in comparison to the magnitude of the risk i.e., you are spending more to control a risk than it could ever cost if it materialized.
What is the return on investment from your risk management program?
Strictly from a business perspective, the reduction of losses achieved by investment in risk reduction measures should exceed the life cycle cost. The decision to protect an asset by additional safeguards can be done through financial analysis of time series of cash flow. Icarus-ORM can guide you through your investment decisions with comprehensive cost benefit analysis.
How can Icarus-ORM help?
Many risks in operation are highly correlated – that is, if one materializes, others are likely to do the same simultaneously or in the near feature. Icarus-ORM can help companies understand and map these risks/correlations and develop relevant scenarios and mitigation strategies to ensure organizational resilience. Icarus-ORM provides insights into financial impact, exposure to reputation damage, accidents and safety.
How does Operational Risk Management fit in with Enterprise Risk Management?
Enterprise Risk Management (ERM) is a comprehensive framework for addressing the volatility associated with many factors: overall operational and financial variables, expected trends in supply and demand, macroeconomic variables, and exposures to commodity prices, interest rates, exchange rates, and credit markets.
Operational Risk Management is a subset of Enterprise Risk Management. Identifying operational risk between those caused by internal and external factors, and putting the right management team in place is the key to successfully implementing an effective risk management strategy.
When does modelling flow networks, maintenance strategies matters?
RAM analysis (reliability, availability, maintainability) is a tool to identify potential for debottlenecking and design optimization. The approach improves strategic decision-making by gaining a clear understanding of the impact of capital expenditure during front end engineering design or facility turn-around planning.