The risks facing today’s companies demand more efficient and effective risk management strategies. These new risks can impact many different aspects of a company’s operations including their license to operate, brand value and business continuity. The severe economic impact of the COVID-19 pandemic has only exacerbated these risks.
This new dynamic around risk plus the macro trends of Industrial Transformation (IX) and harmonization of risk-based management system standards, has created the opportunity to converge EHS and Quality Management processes and technology. This convergence creates a unified approach to operational risk management, enabled by technology and digital transformation.
As companies consider new strategies to manage and mitigate risk, the following are five recommendations for developing an effective strategy and selecting the right technologies:
5 Recommendations for Developing an Effective Risk Management Strategy
1. Embrace the new risk paradigm
The strategic impact of the COVID-19 pandemic on business continuity has driven home the long-standing need for more robust systems to manage operational risk proactively.
2. Use digital tech to move toward Intelligent Risk Management
Your organization’s digital transformation program can be the vehicle to enable the transition from today’s fragmented, manual, and reactive risk management processes to a more unified, automated, and proactive approach.
3. Develop a vision for converging EHS and Quality on Risk Management
There are many reasons to combine EHS and Quality Management Systems and their underlying enabling technologies. Building a consensus on a multi-year roadmap for an integrated EHSQ strategy will help guide your technology selection initiative.
4. Build the business case on transformation, not technology
An EHSQ technology initiative is fundamentally a change initiative intended to digitally transform some aspect of the business. To gain executive attention and approval, communicate business value by aligning the business case with enterprise strategic objectives.
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5. Ensure a future-proof solution
For long term success of an EHSQ software initiative, ensure you are selecting a vendor and product that fits with your longterm EHSQ vision and roadmap, and that is resistant to obsolescence.
Digitally Transform Your Risk Management Processes
Implementing a technology solution to help your company intelligently manage risk can not only improve your company’s risk management process but can also help transform your company’s operations.
To learn more about how you can unify, standardize and digitally transform your risk management processes, download our report, Intelligent Risk Management: Transforming Operations with EHS and Quality Systems: