Many fledgling companies forge, reap immediate financial benefits and temporarily enjoy the profit margins. However, sooner or later, a crisis occurs or a threat is imminent, and no plan exists to combat it. No matter the size of the company, this lack of planning can be devastating. In the words of Gary Cohn, former vice chairman of IBM and director of the National Economic Council, “If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business.”
Many business arenas are particularly susceptible to threats. eMaxx, an industry leader in operational risk management and commercial insurance, is no stranger to these scenarios. The team has spent more than two decades harnessing the power of technology to maximize insurance and minimize risk. eMaxx has worked with clients nationwide in specialized markets, including transportation, towing, energy, utilities, waste, recycling, construction and crane & rigging. In turn, these partners have avoided unanticipated premium inflation, mismanaged claims and the downside of a fragmented commercial telematics market.
For companies that are considering this winning combination of services, it’s wise to first understand a basic operational risk management definition. Most experts view it as a cyclical process which includes decision-making, assessment and use of controls to mitigate or avoid threats altogether. Clearly it is a marriage of process and people. Its success is measured by key risk indicators and data. Risks are varied and range from worldwide crises (e.g., Covid-19 pandemic) to catastrophic weather events, financial loss (including claim denial), loss of systems control, enterprise-wide disruption, IT malfunction, safety loss, regulatory fines, cybersecurity hacks, and legal liability, negligence and equipment malfunction. The breadth and depth are enormous.
Management of operational risk is admittedly difficult, as McKinsey & Co. points out in its recent research, which is why most companies—big and small—rely on expert coordination. It is complex and it requires oversight and transparency of almost all corporate processes and activities, including compliance. McKinsey underscores that by using new technology and new data, operational risk management can improve. Subsequently, integrating these advances with every facet of business decision-making is ideal.
As companies look to the future, they’d be smart to partner with industry leaders such as eMaxx, whose team holds operational risk management certification and possesses the state-of-the-art tools to take this process into the future. eMaxx understands that the days of the ‘rearview mirror’ approach to risk management are over. No more reliance on thousands of quality controls. Rather, data-driven measurements and real-time monitoring with telematics are essential.
Consider the extraordinary partnership of business decision-making powered by operational risk management planning. Be proactive and prevent undue large crises. Contact eMaxx today.