How frequently your financial institution should conduct Enterprise-level Risk Management?

How frequently your financial institution should conduct Enterprise-level Risk Management?

When it comes to conducting enterprise-level risk management, the frequency of doing it should be flexible. Risk assessment review should be something that every company does from time to time. Whereas it would be okay to do it annually, it is even better to carry it every now and then. As a matter of fact, the recommended time is three years. However, some situations demand so. This article highlights those scenarios and their importance to your business.

1. Significant changes in procedures or work practices

Work practices, technologies, and techniques keep coming up and even evolve each passing day. When it happens, in this case, significantly, there is a need for an enterprise-level risk review. If the regulations were based on the previous procedure, it is only logical to review them once the procedure changes. Failure to do so will mean that you aren’t in compliance.

2. New procedures, substances or machinery

The reason for conducting the review under these circumstances is crucial. After all, new machinery, substances and procedures may pose new dangers and risks. Therefore, it is necessary to review and change the regulations to be compliant.

3. Accidents and Injuries

When injuries and accidents occur, we can always use them to learn as much as they are bad. Your company may have done all in its power to prevent them, but they happen anyway. That only means there is room for improvement. Reviewing the enterprise-level risk management will help identify the problem. Strive to identify the weaknesses leading to injuries or accidents throughout the investigation process. Identifying them makes it easy to solve them to avoid a repeat of the same in the future.

What’s next after conducting the Enterprise-level Risk Management?

After a review of the risk assessment, there are guidelines of how the company should proceed. The nature of the identified risks determines the next step. The ideal step is to eliminate it so that no one working in that company is at risk management. As much as that’s what everyone would want, it may not be practicable to achieve it. Therefore, if it is impossible to eliminate the risk, it would be madness to continue trying something impossible.

However, you shouldn’t just sit back and relax. Instead, find ways of minimizing the risk and controlling it using safe work procedures. Measures include providing workers with the appropriate protective gear. The control measures can be administrative or engineer-based, depending on the circumstances. Substitution may also be a suitable way of dealing with risk management.

Conclusion

Reviewing risk assessment is one of the regulations that every company ought to comply with, no doubt. As much as it can be done after three years within the law, don’t forget to do it before that if the discussed issues arise. Otherwise, you will not be compliant, which can cause trouble. Keep in mind that reviewing is not the end of this exercise. The company should go all the way by finding ways to eliminate or control it. Otherwise, the review will be a waste of time.