Thinking about risks, we often come up with workplace safety concerns first. However, if we consider that primary sources of issues are people, assets, and faulty workflows, we’ll conclude that each business has unique risks. Risk management is a fundamental part of any business strategy; we all know the correct procedure: identify risks, prioritize, trying to quantify the impact of a particular risk, and finally manage – decide whether you’re going to avoid, reduce, delegate, or accept the risk and create an action plan. But with the changing business environment and new challenges, novel risks arise frequently. That’s the reason enterprise risk management (ERM) came on stage. In this blog, let’s look at how a CMMS can enhance your ERM.
New Trendy Framework – Does It Make Sense?
In short, yes, it does. But first things first, what does Enterprise Risk Management mean?
2020 has demonstrated that no matter how well prepared we are, unexpected events affecting everything we do exist and will take place in future. What’s more, changes in the global business environment are hard to catch up with, so the volume and complexity of risks affecting your business will keep increasing rapidly. At the same time, boards of directors and senior executives expect more effective risk oversight. Taken together, these ideas suggest that companies might need to take a closer look at whether the current risk management approach is capable of proactively managing the risks affecting their overall business growth and success. ERM is a framework allowing you to do precisely that – accomplishing more effective risk oversight by looking at everything that might fall through the cracks of traditional siloed risk management, where each manager is responsible for the risks in their department.
When Proactive Means Preventive
There are two possible ways of responding to risks: responses to prevent a risk from occurring and responses to minimize the impact if the risk event takes place. How your company responds to risks is a clear indicator of how effective your risk management strategy is. CMMS can help you prevent most maintenance-related risks and their effects, such as downtime and high operating costs.
To keep your operational and day-to-day risks at their minimum, you need to track equipment data. By leveraging Maintenance Care Asset Tracking feature, you will be able to accumulate detailed historical records about past inspections and work orders on your equipment and systems. As a result, you get an idea about what caused specific failures and how to avoid them in future.
Another reason preventive maintenance software can save you time, money, and frustration is that it can get you ahead of the maintenance curve, i.e., you’ll be able to catch minor issues before they snowball into costly headaches and cause even more risks to your staff and clients. Easy preventive maintenance scheduling is essential if you want to plan your workload evenly, improve building efficiencies, and minimize unproductive time.
Make the Best Use of Your Data
You can’t optimize what’s not automized. That’s why workflow automation and standardization is a crucial aspect of enterprise risk management for your facility. The first step is a deep analysis of the current workflow structure, and to conduct one, you’ll need to have access to all the documents: reference pictures, invoices, user guides, compliance forms, etc.
Cloud storage solutions can help you keep all your documentation in one, easy to access location. It is a full repository of information about your facility. An important feature is the ability to link files to work orders, preventive maintenance tasks, assets, etc., to make your future optimisation even more efficient.
The right CMMS solution will make it easier for your employees to understand and manage risks that affect your facility. Maintenance Care has it all to move you to the next step of ERM strategy. Contact us today to learn more!