Why Your Business Needs a Risk Management Strategy
There are many risks in the threat landscape of today, but many organizations struggle with risk management. Read this blog for reasons why you need a strategy.
Risk is something that we all deal with daily. Whether it’s the risks of driving to work or dangers in the office, the risk is a part of life. While avoiding risk is impossible, there are ways to manage it and ensure that your organization stays safe from the dangerous threat landscape. You can’t eliminate the risk, but you can take proven steps to ensure that risk is kept to a minimum.
In this post, we’ll dive a little deeper into risk management and explain why it’s vital to have a risk management strategy in place.
What is Risk Management?
To understand the best strategy for risk management, let’s look at a quick definition of the term. Risk management is the process of finding, assessing, and controlling threats. But it’s important to understand that threats and risks have different meanings. Threats are defined as something that can exploit a vulnerability. Risks, on the other hand, involve the potential harm done to assets that result from a threat exploiting a vulnerability. One of the critical issues with threats is that they can come from many different sources, such as financial uncertainty, strategy errors, natural disasters, accidents, and more.
How We Handle Risk
People and organizations handle risk differently than others. This is because there are many aspects to consider. To understand the seriousness of a threat, someone may factor the probability and consequences of each risk. This methodology can be beneficial for many people, and it is the same approach used in IT risk management.
Why We Ignore Risks
When certain risk surfaces in the workplace, many people decide to ignore it. This is because people tend to think that risk will cost time, money, and resources that the organization doesn’t want to deal with, or because they don’t have them. This issue is especially true in the information technology industry. IT teams are typically very busy, given that they are involved with virtually every piece of an organization. That being said, bringing up issues might place a specific task in a very long queue for the IT department.
Formula for Success
To help organizations understand risks and know when to take action, there is a formula that can be very effective. In this formula, you add risk with planning, subtract fear, then you have a result that gives you the potential for action. However, it’s important to note that the formula assumes that the workforce understands some risk. Using the formula, when the action is lower or equal to zero, nothing should happen. As risk increases and fear decreases, then the potential for action rises.
Planning is essential in this equation, and it is a powerful offset for fear. That being said, planning has a significant impact on the potential for action.
While this can be a very effective formula for managing risk, many variables might make the process confusing. These variables include:
- Change management
- And more
But, by understanding that the potential for action can rise dramatically, then this can help us understand the importance of risk planning and education.
Conquer Risk Management with Network Heroes
If you’re looking to improve your risk management strategies and protect your business from dangerous cyber threats, then Network Heroes is the company you can trust. Network Heroes is a Las Vegas-based IT service company that serves the needs of healthcare and legal organizations. We are proud to offer a wide selection of services, including:
- Managed IT services
- IT consulting
- Cybersecurity protection
- Cloud services
- And much more!
Our team here at Network Heroes understands the dangerous threat landscape of today, so we’re here to help you manage risk while utilizing the right IT services that can help to improve efficiency, productivity, and protection.
To schedule an appointment with our experienced IT team, contact Network Heroes today!