Enterprise Risk Management - Additional Information

Risk Management should be a serious concern for all organizations.  The US tort liability system and governmental regulations pose a substantial compliance challenge.  However, it is a challenge that is often overshadowed by the most vital challenges a company has: remaining competitive and profitable in an ever more competitive world.  In fact, some companies view risk management as only more paperwork and bureaucracy that gets in the way of making money.

It doesn’t have to be this way.  Financial risks can be managed with the same systems and procedures that meet your exposure to liability risk management needs!

Two things which drive business success or failure.

No matter what industry you are in, your business success hinges primarily on only two things:

(1) Your employees doing what they are supposed to do; and,

 

(2) Your employees not doing what they are not supposed to do!  If they don’t do what they’re supposed to do and do what they’re not supposed to do, your productivity and profitability will decrease and your exposure to legal and regulatory liability will increase!  

Enterprise Risk Management with Roster Network Performance Management technologies and systems allows you to pursue all of your risk related goals with a common and efficient technology.

Why a systematic approach is better than training and discipline.

Some businesses rely heavily on individual training and discipline to address their risk management and regulatory compliance needs.  Under this approach, individual employees are expected to develop extensive knowledge of complex subjects and are disciplined if there are failures.  Health care relies on this approach to a great extent.  However, this approach has recently been called into question.  The fixing of blame for problems generally promotes sandbagging or cover ups of mistakes or events gone wrong for a variety of reasons.

We believe that although training and discipline are important components of any management program, they are best utilized in conjunction with comprehensive and documented systems and procedures.  The military and commercial aviation are good examples of organizations that rely on systems and procedures to achieve their performance and quality goals.   If a systems-based approach is taken, when regulations, legal standards or the state of the art in the industry changes as they inevitably do, it is much easier to change the system or procedure and train the employees to do their part of the new or revised system or procedure than it is to train the employees to become overall experts under whatever new standards have been imposed.