4 Internal Risks you should Manage
Internal sources of risk are those you can influence and control — the physical resources and business processes that are within your organisation. To mitigate the risks that these pose to your business, first, define them and their impact. Here are 4 examples to get you on the right track:
- Product quality from brought-in materials right through to finished products. Poor control here leads to lateness, customer dissatisfaction, unplanned remedial work and potentially legislative breaches.
- Asset productivity — the ability to plan and coordinate your materials, production and people assets effectively to meet customer demand. Disruptions in these areas cascade and magnify throughout the supply chain, resulting in unprofitable and uncompetitive business models
- Data integrity across multiple systems. This is a key source of risk. Often products and services may be missing key data elements that cause problems later on, such as components of their bill of materials, cost information, pricing and supplier codes. Because products and services today pass through more parties, geographies and systems on their way to the consumer’s hands, the opportunity for data problems has never been greater.
- Knowledge management. The experiences and knowledge brought to your business by your staff need protecting. How would you cope if key members of staff were to leave the business? How have you ensured that knowledge has been leveraged?
Are you aware of your internal risks and their potential impact on your business? How are you managing them?