Risk Management for SME's
- Simple Risk Management Software Objective Controls is a software system for managing risk in a straightforward and simple way.
- Risk Management Software for Managers It has been designed for managers who don’t have the expertise of professional risk managers. For risk professionals there is Objective Controls Pro
- What Risks? Don’t know the risks you face? Objective Controls is more than just risk management software, it has risk content too. Find risks and controls that fit your organization in our free and premium risk content libraries. See Risk Register.
- How do I Manage Risk? The whole idea of Objective Controls is managing risks effectively but easily, without investing too much time each month. Our risk management software is a framework for you to do this, helping you keep on top of not only risks but also internal controls and control monitoring activity.
Managing risk in a small enterprise is no less of an essential management activity than in larger concerns. While it's true that smaller companies face certain difficulties (described below in Problems of Managing Risk in SME's enterprises) the importance to them is if anything even greater than in enterprises. One of the most common examples of risk management seen in every walk of life is insurance. Asked why they take out insurance the answer most people will probably give you is that they cannot afford not to! The consequences of the car being stolen, a customer getting injured, the home being destroyed or even more catastrophic potential events are what drives us to take out insurance policies.
Why Manage Risk in SME's?
Other every day examples of risk management activities are: Accompanying the kids on their way home, fencing the garden and using anti-virus software. These examples have become ingrained in modern thinking and are therefore intuitive to many of us. Managing risk is all about getting to notice the threats that aren't so obvious and choosing the best methods to keep them in check. Because if we don't, we might find ourselves in trouble that could have been avoided.
So why is it that many SME's don't manage risks? The most popular answers provided by managers are: "We are small enough for me to know the main risks we face" and "we don't have the resources (i.e. money and people) to manage risks the way large companies do". These 2 answers are the result of an incorrectly perceived situation by those asked. These managers just don't see the whole picture! Risk management should be an integral part of all management decisions because risk itself is an integral part of management. Living without risk is not possible, neither in business nor in any other walk of life. What we can do however is spend a fraction of our time weighing up our actions while relating to any risks that might be present.
Problems of Managing Risk in SME's
Most risk management software tools are built for large enterprises. They are expensive, take time to implement and require a lot of maintenance. Objective Controls however is a risk management app build for SME's. It features 4 main characteristics that make it possible for small enterprises to manage risks easily and cheaply. These are:
A Solution for Risk Management in SME's
- Low cost
- Really easy to use
- Up and running in a couple of hours
- Available lists of risks that you can just drop into your schedule
There are many advantages of risk management to SME's. Among them:
- You will reduce the chances of a disaster occurring, or reduce its consequences by being prepared for it in advance
- You will improve your chances for business continuity and have some documented proof of it to put in your business continuity plan - BCP
- You will be able to prove accountability and management responsibility in your organization