3 Steps to Improve Enterprise Risk Reporting
The ever-changing business, economic, social and environmental landscape in which enterprises operate shows how important it is to apply adequate risk management strategies. Enterprises can better identify and manage risks by adopting a proactive risk management approach and communicating the value of risk management through risk reporting.
Risk reporting is critical to show company shareholders and directors short-term and long-term strategies to manage risk factors and project confidence in business systems and capabilities. The following steps can help in improving risk management and reporting.
1. Make risk more quantifiable
Firstly, the more measurable the risks identified, the more likely the enterprise is to anticipate and avert the crisis. Focus on quantitative information and detailed analysis instead of too descriptive, qualitative risk.
Produce detailed breakdowns of all business operations, assets and liabilities, then identify, analyse and quantify risk in each scenario. An integrated enterprise risk management software can digest and analyse all this data at a glance.
Our SHEQX (Safety, Health, Environment and Quality) management solution, part of the XGRC product range, is an integrated management system that aggregates SHEQ data in a single, auditable database, to manage analysis and reporting effectively.
2. Keep reporting clear and concise
Detailed analysis is essential to provide as much information as possible about risks and the probability of future events. However, while extensive data is preferred for decision-making, keep risk reporting clear, concise and impactful, while including key factors.
A summary with the quantifiable risk data, principal risks and current concerns will provide valuable insights into the business landscape. Using enterprise risk management software can help you drill down to the critical information.
3. Review risk experience
Risk reporting is a continuous function of enterprise risk management. As the risk landscape changes, so does the risk management strategy require new analysis and reporting. Businesses factor in previous reporting cycles and lessons learnt to mitigate future risks.
Reviewing risks after every reporting cycle is critical to the success of any risk management strategy. Enterprise management software can successfully automate the review process, identify recurrent risk patterns and key factors, and recommend adjustments.
Enterprise Risk Management (ERM), part of the XGRC Software product range, enables the processes to manage enterprise risks and seize opportunities to achieve your strategic objectives.