Operational Risk Management Training

In today's volatile atmosphere, operational risk management training is an absolute necessity to maintain integrity in the midst of high stakes emergencies. The training is also needed to foresee risks not inherently visible from various vantages within the organization. Operational risk management is defined as anything that might impede superior response to potential threats. These threats could include terrorism, inside operational breakdowns, weather anomalies, technological failures or other high impact barriers to business as usual. Threats may even include negligence on the part of employees and computer hacking. Subsets of threat classifications could go on for pages.

If a company has not considered doing a threat analysis, the business would be wise to do so quickly. Whether large businesses or small, the interconnectedness of commerce in the twenty-first century makes threat assessment highly desirable. Risk management classes are offered both at the college level and as online courses. With stockholders demanding more and more security of their investments made a high priority, planning is essential to let them know what strategies are in place before an emergency develops. And there could be no greater comfort than for a small business owner to know that most every scenario that could impede or block the flow of business has been anticipated and a plan put in place if the unthinkable happens.

Why would the executive or owner of a company want to take the time to ponder various types of threats to one's business? Just a cursory look at the scope of what operational risk management training covers is eye-opening. Issues such as roles of staff in emergencies and key man loss contingencies are discussed and considered. Insurance claims and contacts with agents must be addressed. Locations for employees' assemblage after a disaster and ways to switch and receive information if traditional means are interrupted are included as topics. "For the sun is no sooner risen with a burning heat, but it withereth the grass, and the flower thereof faileth, and the grace of the fashion of it perisheth: so also shall the rich man fade away in his ways." (James 1:11)

Investing in such a study would be of a real benefit to companies' long term health. Allowing key people to take risk management classes will bring a new sense of well-being to both employees and stockholders. Consider for a moment that insurance rates could drop across the board for a company that has a viable plan in place to face threats ranging from bioterrorism to tornados. Consider that in risk management classes,details such as event chain planning can occur. Viewing all processes of life as a chain of events, this threat plan can replace some broken links so that chain events can continue within a business operation. Having ways around broken event links can quickly minimize the affect of threats to business stability.

Not only are profit driven businesses needing threat assessment and management. Non profits face their own set of threats and in response, operational risk management training for executive directors is a niche some training programs have created. Non-profit organizations can easily forget that their volunteers often provide a source of risk not considered until a problem arises. Issues such as staff screening, child protection measures, emergency response actions, disciplining problem clients, access to facilities and many other issues can haunt a non-profit if not dealt with in a well structured manner. A non-profit can be fatally wounded if there is any hint that contingencies were not planned for and anticipated. Of course, the very nature of some non-profits is to trust without verifying.

The reality is that no one is really looking out for an organization's well-being except that organization. The advantage of having key leaders take threat management classes is that the graduates of such courses can apply general and specific knowledge gained from such education to their own situation. They can know right away which risk threat paradigms are applicable and which ones are not. And while an outside company can come in and perform risk threat analysis and help develop a plan to mitigate risks, the reality is that those outside resources pack their bags and leave town. The employees that have a stake in the day to day operations can be observant and watchful in the process of plan engagement.

But the choice may not be to engage employees in risk assessment training. Operational risk management training may be scrapped in favor of an outside consultant entering the scene. The upside to such a decision is that the people involved in these kinds of consultative processes are experts, or so it is hoped. An outside, objective view of present day operations is devoid of any agendas that can be brought to the table by present employees. Bringing in outside advisors instead of using formal risk management classes can provide some companies the additional promise of legal help with the use of the consultant in the event of a threat situation.

Never before has society faced the number of possible threats and risks as today. School shootings, child abuse, terrorism here and abroad, hurricane and tornado seasons, fuel and food shortages, political unrest, class disparities widening and a host of other possibilities make it clear. Operational risk management training or the use of consultant to provide risk analysis is essential for both small businesses and large corporations. Failure to address clear and present dangers is a one way street the wrong way when it comes to maintaining company market competitiveness. Get a plan and live by it!

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