With a massive change in daily life owing to the pandemic, no choice is left for business entities but to focus more than ever on risk management. The risks seem to have become more complex with time owing to digital technology. Thereby, it requires more attention and tactics to handle, emphasizes Michael Saltzstein, a pro at risk management for several years.
The health and safety of employees cannot be comprised in any way, which is why a lot of businesses have to lose the traditional way of function and adopted the new way of working from home. This certainly changes every aspect of the business including the risks that it is currently exposed to and needs to deal with.
As companies had just begun adjusting to this new wave in the corporate world when again the opening up of workspaces again turned around a lot of things for both the employer and the employee. Asking the staff to sit at home was a jolt enough when the thought of how to bring them back to the working space posed a greater threat to the businesses.
With this constant wavering of different varieties of risks, company owners are now trying to get a fresh look at the risk management systems, informs Michael Saltzstein. Saltzstein himself is known for very ably managing risks for companies and being instrumental in producing optimized strategies that would help companies cope with the trending risks comfortably and effectively.
Risks are a common thing for financial service companies as they are always susceptible to very difficult scenarios. This is why they have always had a chief risk officer to look into the numbers and ascertain control measures to reduce or mitigate the risks. They deal with quantities is what experts opine.
The other non-financial businesses, however, need to face risks that are qualitative in nature. This is what makes their management tougher. People such as Michael Saltzstein who have spent so many years working in this field feel that traditional risk management is not as good as enterprise risk management. Both methods are aimed at eliminating and minimizing risks while including insurance as a remedy and following government protocols. Yet they differ in the way the traditional does not recognize risks as an integral part of business and treat it accordingly.
Enterprise risk management, however, understands that risks are an interwoven part of any corporate entity and that is why they treat it in a way so as to be able to derive benefits out of it and add value to the business. An ERM team is set with a few members who take care of the risks by identifying them, implementing risk control measures after consultation with the higher authorities, and also monitoring the efficiency of the measures employed. They further maintain records for future use.
Enterprise risk management experts are known to come from consulting backgrounds and that is what gives them a consulting attitude unlike the traditional form, despite not owning the title of the chief risk officer.