Beyond theory: effective risk management in practice

Why apply risk management in your organization?

Risk management is all about identifying and managing risks that disrupt your business goals. Every company has a unique set of risks and opportunities that are specific to its own context and industry. Tailor-made risk management is important so that it not only meets legal requirements, but also the needs of customers, employees, investors and even the environment and society.

Risk management is largely about the qualities of your organization. This concerns questions such as:

• What are major threats?
• What opportunities are we missing out on?
• How can we ensure our business continuity?

An example: a customer-friendly company like De Efteling has been praised for its excellent service for years. But customer-friendliness alone is not enough to manage risks. There is much more to it, such as meeting stakeholder requirements, laws and regulations, and the continuous improvement of processes. Risk management helps to maintain this overview and to guarantee all aspects of quality, such as customer-friendliness, cost control and safety.

Risk management goes beyond following guidelines. It helps you focus on what's really important to your organization, whether that's customer satisfaction, cost savings, or safety. This makes risk management a tool for preventing risks, but a strategic tool as well.

Why risk management isn't just about threats

Risk management is often about preventing problems, but above all, look for opportunities. By paying attention to what is going well and thus seizing those opportunities, you can stay one step ahead of change in the market. Risks and opportunities are often close together – by identifying both, you can strengthen and challenge your organization.

Applying risk management

The practice of risk management is complex. It requires a structured and proven approach, such as the Plan-Do-Check-Act (PDCA) cycle. This approach helps you to identify risks, implement measures, and monitor them continuously. Still, every application of risk management starts with leadership.

As your organization grows, at some point you will need new and more comprehensive systems. Leaders – management, CEO – have to go along with this. However, it is not always possible to enthuse this group within the organization for a new approach. That's why it's important to keep risk management manageable and accessible to everyone involved within your organization.

The next step is to recognize risks. This goes beyond just operational risks such as data loss or delivery problems. It also includes strategic risks such as reputational damage or market changes. This is followed by an analysis of these risks: what is the probability of their occurrence and what is the impact? It is important to understand that risks are not only threats, but can also offer opportunities. Identifying and seizing those opportunities is part of risk management.

The next step is to take concrete measures to reduce or even avoid risks. This can be done, for example, by implementing data backups, security systems, or specific processes and procedures that prevent incidents. Finally, it is important to regularly evaluate, adjust and improve this entire process. This is the only way to keep risk management in line with a changing environment.

Risk management in practice

Practice shows that a risk management system helps to make your policy clear. Think of a dashboard in which you record risks, measures, and responsibilities. This makes the work clear and helps you to monitor progress. You can keep track of that information in an Excel file, but a more extensive software program often offers more control.

With a clear risk management system, employees can also see their risks for themselves and work with them. This raises awareness throughout the organization. For example, risk management is not just "the party of the compliance department", but a shared responsibility.

Woodwing Scienta helps you to work on quality and risk management. With Scienta, WoodWing offers a solution for effective risk management in practice. Scienta is more than a system for storing information; It supports your entire risk management process, from planning to reporting and evaluation.

Why risk management with Scienta?

One of the biggest advantages of Scienta is the ability to organize risk management systematically, transparently, and efficiently. Many organizations start with risk management in Excel lists, but eventually get stuck in its limitations. With Scienta, you work within one platform, where all information is clearly organized and accessible to the relevant departments.

In Scienta you can easily identify, describe, and categorize risks. You can then assign responsibilities to specific team members or departments, making it clear who is responsible for which measures.

With its user-friendly dashboard, Scienta offers valuable insights. Here you can not just see the status of risks, but also what steps you have already taken to manage them. The reporting capabilities make it easy to share results with management, auditors, or other stakeholders. This is how you demonstrate risk management.

Scienta's risk management system also helps you to respond quickly to changing regulations, such as the ISO standards or new laws and regulations such as the AI Act. By being able to continuously monitor and report, you are always prepared for audits and you can demonstrate that you meet all relevant requirements.

Why risk management: from theory to frontline

Risk management in practice is therefore more than a theoretical model; it's an ongoing process that makes your company stronger and more resilient. Whether you start with a simple risk analysis or work with an advanced system, the key is action. Know what your risks are, take advantage of your opportunities and adjust them where necessary. Because it is precisely by making risk management practical that your organization can grow.

Risk management starts with a good theory, but the real success lies in practice. With a program like Scienta, you can optimally support this practice, so that risk management becomes effective and future-oriented.

This article is a recap of a WoodWing webinar about risk management (Dutch only).