Read more about e.g. sexual harassment and vaccine side effects vs. infection pressure. Where a given consequence should be evaluated against probability - and the cost of doing something.
Exposing yourself to risks is an essential part of doing business, acting with fellow citizens and managing assets and installations. No one avoids risks, so preparation and sensible management of risks and uncertainties should be given high priority.
Risks include incidents such as new competitors, production freezes, scandals and much more. They occur with different probabilities and have different consequences. One should prepare for risks based on a weighting of both probability and consequence - based on one's own risk appeal.
Risk management - in English risk management - is important for both private and public companies - within industry, municipalities, education, utilities, logistics, healthcare and many more.
Below we have described examples of risks as an inspiration to spot risk topics that may be relevant to you.
Do you know the case of HUSK? The reputation got a proper notch over the spout this spring. Their flee seed shell product was feared to contain salmonella, and they, therefore, recalled the product. With large costs associated with handling, lack of turnover, and an effect on post-demand.
Over time, we have also seen many retreats of cars or a free repair. Some have cost billions. Both in the case of recall in itself but also in legal and compensation costs for victims.
A recall is therefore a costly affair. Both in relation to the short-term cost effect, but also on image and thus also a long-term economic effect.
Therefore, it most often makes sense to protect oneself from this potentially violent consequence by minimizing the risk. Through tests in several places in the development, production, and delivery processes. And if the accident should be out, it is important to be able to react quickly to contain the misery. In relation to communicating internally and externally, both about practicalities but in particular also in relation to limiting customers' mistrust.
Can you react quickly? Are you prepared in the event of an accident? We are big fans of being able to react quickly and appropriately. We have modules to ensure intelligent two-way and mass communication, crisis management, contingency plans, etc. Read more here: Active Contingency Plans & Continuity of Operations (COOP)
Originally posted on LinkedIn July 2021.
Some positions are difficult to re-fill – at least for the foreseeable future. Some herds must be of a certain size in order to provide the required overall amount. So your labor is a place where things can go wrong. In risk management terms, loss of key personel is a risk with an associated significant consequence.
Within risk management discipline, many elements should be taken into account depending on the type of organisation you are. For example, an airline must deal with the risk of a plane crash to a large extent, and a larger bakery chain must, for example, take into account the risk of missing or faulty deliveries.
A risk such as staff shortages is broadly across industries, but in some types the consequence is extra high. For example, many companies in the IT industry are currently crying out for developers, as the consequence of shortages causes problems in terms of being able to deliver a satisfactory performance and exploit a favorable market. At other times, the risk of seeing staff shortages is less, although the consequence may be the same. Risks and consequences are moving sizes.
So what to do with a given risk? Should the presence be accepted? It depends entirely on how likely the probability is and how great the consequence is. A small risk – which lies within one's risk appeal – should be accepted and thus simply lived with. A risk issue with a greater probability, but little consequence, is also acceptable. At the same time, developments should be monitored on the accepted risks, which can have a major impact.
Other risks that are sufficiently significant can instead be addressed by trying to avoid them happening – by, for example, improving quality assurance, reducing them by reducing probability and/or consequence, or transferring the risk to, for example, an insurance company.
In the case of key people, in many situations, you should reduce the likelihood of them leaving your organization early, while at the same time seeking to reduce the consequence by distributing knowledge and competences on a daily basis.
We offer software modules to assist you in your risk management. Both in collecting data on potential risks, formulating structured but simple risk analysis, and acting effectively in a crisis situation. Read more here: 360 degree risk management with Enterprise Risk Management
Originally posted on LinkedIn January 2022.
The Danish Health Authority has considered all aspects carefully. They have had to evaluate whether the scenarios with or without the Johnson & Johnson vaccine were the best. Based on consistency and risk.
In short, the scenario of withdrawing the vaccine wins, as in Denmark – at the moment – there are fewer and smaller risks associated with getting contaminated with Corona than the vaccine, and there is a relatively low risk of getting Corona at
all.
Why?
Well, only the younger and reasonably healthy people have yet to get the vaccine, and they can better resist the virus if they become infected before it becomes their turn to be vaccinated. Because the calculation also includes the fact that there are other vaccines available, so the younger ones will still be vaccinated - just delayed.
At the same time, the infection pressure is low, which reduces the risk of becoming infected at
all.
Danish Health Authority 3rd of May
Originally posted on LinkedIn May 2021.
Violations, threats, violence, and other offences can be prevented to some extent, but it must also be possible to act if the accident occurs. And how do you go about it in the best possible way?
If you ask us, sexual harassment and other unpleasant incidents are risks with potential consequences. The probability may be low, but the consequence is usually high.
Therefore, in many cases, it should make sense to be able to deal with this kind of incident through having structures in place in advance and afterwards.
To be able to handle
Originally posted on LinkedIn April 2021.