Why Does MoR Risk Management Benefit Businesses And Organisations?
As a business owner I decided I needed to implement MoR (Management of Risk) Risk Management in the workplace. I was having a discussion with another business owner at a network meeting last month and he explained what MoR was and why he had introduced it into his workplace. MoR was conceptualised by the OGC (Office of the Government Commerce) and the approach was initially formulated to complement OGC’s guidance on program and project management. The basic principle underlying MoR is to help organisations put in place efficient frameworks in order to take very calculated decisions on risk. Every decision that is made within a business has an upward end or downward end and involves some degree of risk. As my business was becoming increasingly busy and the rate of risk was rising, I needed some type of risk management system in place.
The MoR Risk Management concept makes available a broad framework for risk management across all levels of an organisation and this includes the project stage and operational stage. The programme incorporates all actions that are required to spot and control exposure to any kind of risk involved – either positive or negative, which may have a direct or indirect impact on the accomplishment of your business objectives. MoR Risk Management is a program that brings together a set of inter-related processes, approaches and pointers to other sources of advice on risk management techniques and mechanisms. Depending upon the nature of risks and my organisation objectives, it provides an insight on how the approaches and principles can be embedded and applied in different situations.
There are four core concepts which form the MoR Risk Management framework and aims to show how risks can be identified, assessed and controlled: MoR Principles – which is essential for a good risk management system; MoR Approach – every organisation has individual needs and the MoR approach can be adapted to these individual needs. MoR Processes – the processes define the activities involved and enable the risks to be identified and controlled; reviewing MoR – after successful implementation of the principles and processes, consistent application is needed across all levels of an organisation.
Since I have implemented MoR Risk Management I have found there have been a number of benefits for my business. Some of the benefits include: an enhanced basis for setting strategies; an improved service delivery level; it gives my business a greater competitive advantage; unwelcome surprises can be avoided; implementation of change initiatives are performed in an effective manner; there is an efficient usage of available resources; there is a reduction in wastage and fraudulent practices, which gives better value for money.
In conclusion many organisations have started to recognise that risk management can be applied in both situations, i.e. positive opportunities and negative threats. In either case, an approach needs to be taken to reduce any possible threat or increasing the size of possible opportunity. The important factor in this approach is the flexibility it carries to ensure its application to all levels of decision-making. The primary purpose of MoR Risk Management is to correct a systematic application of principles and processes towards identifying, assessing and evaluating possible risks, and thereafter planning for risk responses. This also paves a way for a disciplined decision making environment.
It took time and money to implement MoR Risk Management, but it has been worth it and in ways that have surprised me – my staff feels more confident to take risk as they have a framework to work within. In turn this has increased productivity and our overall turnover. I would definitely recommend any organisation or business to employ MoR Risk Management.
About the author: Brian Kelly wrote the article 'Why does MoR Risk Management Benefit Businesses and Organisations?' and recommends you visit the AFA website for more information on Risk Management.
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