Risk management – implementation examples in different companies
Every company should have a risk management plan in place to avoid, among other things, downtime, decreased competitiveness, and even bankruptcy. In this article, we present examples of Polish companies where PBSG successfully implemented risk management systems.
To talk about a risk management system in a company, several factors need to be considered, including risk factors, methods of identification, and risk management techniques. The nature and specifics of the organization are also very important. Some companies have their own risk management methodologies, while others are still developing one or may not even realize they need it.
What is risk management in a company?
According to the encyclopedic definition, risk management is the decision-making process and implementation of actions aimed at achieving an acceptable level of risk for a company. The goal is not only to control risk and predict its consequences but also to ensure business continuity, stable financial performance, and create conditions for further growth.
The risk management process consists of four stages:
risk identification
risk measurement
risk control
risk monitoring and control
In order to talk about risk management, one must be aware of how a given risk affects the company’s strategy, conduct the identification of risk factors and their consequences, keep a record of risks and their categories, and, most importantly, continuously monitor risk. The risk management system should also include a plan for implementing corrective actions in the event of a detected threat.
Why is risk management so important?
In integrated risk management (ERM), the focus is on integrating risk management with existing processes within the organization and determining future events. Importantly, risk management is a process that evolves over time. This means that it is necessary to respond to changing market, political, and internal factors, which may cause the significance of specific risk groups to change over time.
Some business benefits of implementing a risk management system:
greater flexibility in adapting to new situations and approaching changes
faster and more efficient decision-making in strategic matters
minimization of the impact of risk on the company
łatwiej przewidzieć niektóre zagrożenia i dostosować się w przypadku ich wystąpienia
better utilization of resources
These are just some examples of the benefits provided by a risk management system. We have written more about them in the article: Why it is worth managing risk?
An example of risk management implementation in a hospital
One example of how risk can be managed in a hospital is a project we implemented at the Prof. Franciszek Łukaszczyk Oncology Center in Bydgoszcz. The task was to implement the erisk software and customize it to meet specific needs, which required experience and knowledge of how such an institution operates and the risks it faces daily.
The first step was a risk analysis based on the documentation provided by the hospital, followed by the implementation of the methodology into the tool. The second step was to personalize the tool so that it was ready for use and fully reflected the applied methodology – for this purpose, we added notifications, a risk library, created users, etc. Additionally, we will train employees to increase their role and awareness in the field of risk management.
A full description of the implementation can be found here: Case study – Oncology Center in Bydgoszcz.
An example of risk management implementation in a stock exchange company
Another example of risk management implementation in a company is a project carried out for Huuuge Games – a global game producer and publisher. The American company debuted on the Polish stock exchange, which is why they were looking for a consultant who would not only implement the system but also efficiently guide them through the entire process. A key requirement here was documented experience and recommendations. Our portfolio, which includes the largest organizations in Poland, as well as our special ERM implementation offer for stock exchange companies, worked to our advantage. The client also appreciated our availability, even before formal cooperation began – we individually met with the CFO to present proposals and answer questions about the project.
A significant challenge here was flexibility and the ability to navigate in an international environment. The project required knowledge of the work culture and communication specifics, as it involved employees from the USA, Israel, and East Asian countries. It was crucial to develop a concept for managing operational and strategic risk in the context of an IT company operating globally. The positive evaluation of our collaboration indicates that we excelled in this task.
A full description of the implementation can be found here: Case study – Huuuge Games.
An example of risk management implementation in a manufacturing company
When talking about risk management, we should not overlook manufacturing companies. It is crucial to respond to any deviations from norms during the production process, which may include equipment failures, malfunctions, or poor material quality. This type of risk was faced by Newag, one of the oldest railway companies in Poland, specializing in the production and modernization of railway rolling stock. Together with them, we implemented a project aimed at improving the risk management system, which included developing a model and implementing the methodology into the erisk software.
The client wanted efficient information flow and increased frequency of risk assessments, as well as improved mechanisms for risk control. We carried out the work in line with the best practices of COSO and the ISO 31000 standard.
A full description of the implementation can be found here: Case study – Newag.
An example of risk management implementation in a trading company
Finally, we would like to present an example of risk management in a trading company, using CCC S.A. as an example. It is one of the largest footwear retail companies in Central Europe and one of the largest shoe manufacturers in Europe. The goal of cooperation with PBSG was to build a risk management system.
The work included an audit, the development of a risk management system concept in line with ISO 31000 requirements. Given that not only the system should monitor risk but, most importantly, people, we conducted a series of training sessions and workshops. Thanks to the training, employees’ knowledge of risk management and applicable procedures increased. The individual workshops were essential to create a list of risks and plans for dealing with unacceptable risks – due to confidentiality and the fact that this task was for the business, our consultants were only present at selected meetings indicated by the audit department.
A full description of the implementation can be found here: Case study – CCC S.A.
At PBSG, we understand that every company is different, just like the industry in which it operates. Therefore, we precede implementation work with a detailed analysis of needs and the solutions in place. This allows us to propose a system tailored to the specific needs, whether we are talking about a stock exchange company, a hospital, or a private business. This is crucial because proper risk management can significantly minimize threats and also have a positive impact on financial revenues and the company’s reputation.