The real ‘best practice’ in Risk Management is to be PROACTIVE and a Risk Manager can accomplice that with the so called “Environmental Scanning”. In this practice the Risk Manager and his team are continually monitoring Key Risk Indicators (KRI) attached to externally (and internally) facing influences and drivers that can affect the risks in the organisation and the project.
With current available technologies such as Big Data, Social Media, RSS (automatic subscription feeds), and predictive technologies, scanning what’s happening around you is not only possible but should be your first line of defence. It not only introduces Proactive Risk Management but also introduces Opportunity Management with its ability to identify both positive as well as negative risk trends, and thereby raises Risk Management to another level by transforming it tο a Value-Adding business strategy.
Environmental Scanning is not a standalone answer to effective risk management, as the Risk Manager will need to change company’s current “siloed” risk profiles to integrated risk profiles, (like in the Fast Track Neural network) and step up from the 4×4 Risk Matrix to something like Bayesian mathematics to calculate risk.
If you are interested in reading more on the subject, Google: Environmental Scanning, KRI, Scenario Analysis, and Bayesian mathematics, or join our prep courses (indoor or on-line) by visiting our following training pages:
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