The likelihood of these events occurring and the potential extent of their impact depends on an organisation's practices, processes and culture as well as the industry it operates in. If left untreated operational risks can cause business interruptions which may result in substantial financial loss and can cause negative media attention, damage to reputation, fall in share price or loss of market share.
Such risks include:
- occupational health & safety risks
- environmental risks
- risk of industrial disease
- risk of injury to employees
- risk of product tamper
- property damage risks
- security risks
- technology risks
There may also be a risk of litigation resulting from:
There are many insurance products available to protect against financial loss. However, insurance alone is not the complete solution. Insurance only provides an indemnity to the financial loss incurred. It cannot repair a tarnished reputation, reinstate market share or share price, heal an injured employee or restore relationships with customers and suppliers.
It is best to take a preventative approach to managing operational risks. Adopting a risk management system will allow risks to be identified, analysed and the appropriate treatments implemented which will either reduce the probability of risks occurring or mitigate their effects on the organisation.
Our Risk Consulting practice can analyse the risks your organisation faces and work with you to protect your business.
|
