Risk Management Strategy - Company Policies
RISK MANAGEMENT STRATEGY 2011
Naks Cleaning service's Risk management is the process of identifying risks either to the business or to its client partners, evaluating the potential consequences of the risk and then determining the most effective method of either controlling the risks or at least minimising their effects. The main objective of the strategy is to endeavour to minimise disruption of any undesirable events that can adversely affect the business of Naks Cleaning services in any way be it financial, reduction in service, reputation or standing.
Naks Cleaning bases its Risk Management Strategy on the following four processes:
1. Identification of Risk.
2. Analysis of Risk.
3. Control of Risk.
4. Monitoring and Regular Review of Risk.
Identification of Risk.
All tasks involve an element of risk and it is therefore imperative that a systematic approach of identification is used. By identifying areas of risk prior to issues arising ensure that steps can be taken to either prevent the issue arising, or minimising its effect.
Analysis of Risk
Once areas of potential risk are identified; they will need to be assessed accurately by qualified or experienced managers. This assessment will be based on:
Probability of risk (likelihood)
Severity of risk (how bad it is)
Cost of risk (can be financial cost or how many others it can affect)
Control of Risk
Risks cannot be eliminated totally but by controlling the risk by taking action prior to the event happening, allows us to minimise the likelihood of it occurring and reducing the severity o the event if it should occur. The control is based on:
Avoidance (not undertaking task)
Reduction (taking steps that will reduce the risk)
Transfer (removing liability via insurances or using service providers)
Monitoring and Regular Review of Risk
Regular reviews must be taken to ensure that:
The risks identified have not changed.
The control of risk has been implemented correctly.
The control of the risk is being effective.
It is the view of Naks Cleaning that all our employees, suppliers and client partners should not only contribute to a Risk Management Strategy; but should also seek to share best practice with regards to any potential or inherent risks involved in their business.