The Importance of Effective Risk Management for Small and Medium-sized Businesses
Starting a business can be an exciting venture, but it also comes with its own set of risks. All startups expect to succeed, but only those who can effectively manage risk will thrive and join the ranks of small and medium-sized companies that are the backbone of our economy. Managing risk can be daunting, but with the right tools, it doesn’t have to be. TRM Advantage, a subscription-based risk management software, streamlines risk management and supports your company’s long-term growth by helping you to forecast negative business events and leverage your entire team’s knowledge to either avoid them or minimize their impact.
The Benefits of Effective Risk Management
Assume you are bidding on a large contract that could provide a lot of growth in a short period. There is no doubt that the contract contains risk. Input costs could change, supply chain issues may appear, payment may be delayed, production may be delayed, and many other issues could come up. Before preparing the bid, you have a chance to identify the potential issues, determine just how much risk each one has, and take steps to reduce the impact the critical ones could have on your business. Very few businesses fail from known and addressed risks.
Most successful small and medium-sized companies manage risk using different approaches because there is almost no appropriate software available. Small and medium-sized companies need a powerful but easy-to-use system that helps their risk management remain on point. Commercial packages are focused on large companies and look at investment, IT, and enterprise risk management. Performing risk management using a spreadsheet is possible, but it is very time-consuming and difficult to maintain.
5 X 5 risk matrix the best option for qualitative risk
TRM Advantage: Your Solution to Streamlined Risk Management
TRM Advantage helps small and medium-sized businesses analyze and visualize their risks. This makes risk reduction simple. Before submitting a bid, bring key members of your team together and identify potential problems if you are successful. Using the guide, determine how likely a problem is to occur – anywhere from very likely to extremely unlikely. Then determine what can happen if it does occur from the perspective of cost, Safety-Health-Environment (SHE), quality, and corporate liability.
With a bit of discussion and a few clicks, you’re done. The risk will fall into one of four categories – critical, high, medium, or low. We suggest focusing on the critical and high risks first and developing a plan to lower or eliminate each one. Update the risk as the steps in the plan are completed and review the report to know the status of all your risks at any given time. Once you have been awarded the contract, add risk as an agenda item at your management meetings. It helps you to emphasize preventive actions to the team. Add new risks when identified and update risks during the meetings without disruption. TRM is usable from desktops, laptops, and mobile devices so updating, closing, and adding new risks is simple in any setting.
The Endless Benefits of Effective Risk Management
Effective risk management in your business has an endless list of benefits. Your customers and investors are more confident in your performance. Everyone on the team becomes forward-thinking instead of reactive. Your team develops a broad understanding of your business landscape and where the risks lie. And you become more confident in what you can take on – quickening the pace of growth.
Why TRM Advantage is Your Best Bet
TRM Advantage isn’t just software; it’s a team of expert resources at your fingertips. You’ll have access to top risk management specialists, videos, and even a Risk Management Solution procedure. Not sure? Try it commitment-free for the first month at www.trmadvantage.com. There is no value like it in today’s business world.
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