You likely have identified and assessed your biggest risks and have a strategy for dealing with them. But there’s more you could be doing to improve your risk management, especially in managing arguably your biggest risk—regulatory risk and compliance. Try these 5 strategies to make your risk management plans more effective.
Create true accountability
Accountability isn’t just a buzzword. It’s vital for encouraging employees to be honest about deliverables, overcome obstacles, and take action to get results. In order to achieve it, you need to encourage employees to take ownership of their work, and create an environment of engagement, transparency, and communication within your organization. Without accountability, people are more likely to play it safe and protect themselves, meaning when things do go wrong, they’re more likely to blame others and make excuses. This is bad news for you risk management strategy, and for your organization as a whole.
Implement effective training
Did you know that a recent survey found 62% of managers felt “completely unprepared” to address compliance issues. Add to that the fact that 85% of employees look to their manager for guidance when facing compliance issues and you have a recipe for disaster. Consider the fact that compliance is one of the greatest risks your organization faces, and it’s clear proper training should be at the top of your risk management plan.
Make the most of your data
With increasing regulatory and compliance demands, the need for risk management and transparency are also rising. By using analytics to dig into your data, organizations can track how they address risk. Yet, data is not being used to its full potential. Take for example, human resources compliance, and the fact that less than 16% of HR leaders use analytics to predict and address risk in workforce management decisions. That’s a potentially costly missed opportunity.
Focus on retaining your employees
Every business wants to retain customers, yet may not understand the connection between reducing employee turnover and keeping customers. Employee turnover is a business risk, and the costs are high. Moreover, your company’s success is built with your employees. If you want to retain customers while reducing your business risk, start by taking steps to improve your employee retention rates.
Know the rules—and follow them
In addition to examining your employee management practices, you should take a look at your
hiring processes since some common practices can inadvertently put your company at serious risk. For example, Googling prospective employees or checking their social media profiles can help you avoid hiring the wrong person, but it could also put you in the crosshairs of a discrimination lawsuit.
Check out the articles below to learn more about each of these tips.