How do we assess maturity and opportunities to improve the effectiveness of risk management?

Each company deals with risk management to some degree, even though they may not be aware of it. Why? Because with every business decision, you also think about what could go wrong.

However, risk management is not just about feeling or logical thinking about these situations but a planned and professional activity that sets the foundation for business decision-making and success.

The assessment of the effectiveness of risk management is based on a generally accepted criterion that is
Risk Management Maturity, which usually has five levels.

Maturity depends on several factors, such as the inclusion of risks in business decision-making, the prevalence of risk management within the organization, regular and systematic monitoring of risks with organizational measures and tools, early warning and prevention, control of realized risks and the like.

Level of Risk Management Maturity tells the current situation and what improvements are possible to achieve a higher efficiency level.

Although simple assessment tools are available free of charge, we can’t help ourselves much with them for at least three reasons.

First, they involve only a limited set of questions; second, they are usually tailored to large corporations. Third, they are not intended to help, but rather evoke the need for more in-depth analysis.

Due to all the above, as risk management specialists, we have also developed a methodology for assessing the level of risk maturity that is more suitable for our business environment and is carried out in three steps.

The analytical part includes reviewing documentation and tools and targeted interviews with specific company representatives or organizations.

The result is 25 indicators with which you can assess effectiveness in five critical areas of risk management and recommendations for improvement.

In the final step, we present the results and proposals and answer your questions with more detailed explanations.

If you are interested in assessing the degree of maturity and effectiveness of risk management in your company or organization and learning how to improve it, let us know through the form below.

Of course, we can also help you reach the efficiency and practicality of risk management in several other ways.