There are various operational risks that can take place in your company. Whether you
have a big or small firm, risks are there to stay. But the good news is that there are ways
to prevent these things to happen. One thing that managers should know and understand
is that they should be aware that risks can happen anytime. So what are the operational
risks? Check this out for more info:
One general risk that people can’t prevent from happening is nature threat. This includes
floods, typhoons, hurricanes and earthquake. These natural disasters can damage your
property, interrupt current deliveries and spoil perishable goods. Delays on distributions
and damage on products are the usual risk cases. Spoilage will lead to increase of
Human threats are equally important. This includes human errors and negligence.
Corruption can also be a risk that can damage not only the finance department but also
the name and integrity of the company. Unauthorized access on confidential documents
can destroy the organization.
Environmental threats and failure of equipment.
This includes the leakage on equipments that may lead to damaging the environment.
Long term power outages can provide risks for your company that will decrease
productivity on operations.
So being prepared with back up plans and systematic approaches on each problem will
organize not just your business but also the designation of work of each member of the
team. Identifying common operational risks is one step to further advance your system.
All these threats and risks should not be taken for granted. Always remember that
prevention is the key to avoid risks no matter how successful your company is.