Management of risk is increasingly becoming an expectation of employees, shareholders and the general public. This may be because the media has instilled such expectations in the public psyche through sensationalist coverage of corporate difficulties and disasters. In many cases, the expectation may not be unreasonable, but how do you go about limiting, or reducing, your risk exposure?
Gates Aviation can carry out a Gap Analysis to highlight vulnerable areas of your company, identify risks and keep track of their performance over time via a risk register. A risk register will enable a company to identify, analyse and manage risks by scoring and ensuring relevant people accountable for those risks.
A Risk Register will enable a company to manage risks effectively. Key risks can be appropriately identified and assessed on an ongoing basis and changes to those risks can be monitored. It shows where key controls are operating effectively and consistently and risk management techniques (such as insurance and fuel hedging) are in place and effective. The risk register shows the impact a risk would have on the company and the probability of it occurring. Risks are also given a ranking so that the higher priority risks are highlighted. Gates Aviation can develop a risk register with you to ensure that it is being used to the best of its ability.
Where residual risks have been accepted and then occur, it is important to ensure that there are contingency plans in place to enable your company to continue operating and recover from what could be a potentially damaging or catastrophic event. For example, there may be several ways to protect your building against a fire (sprinklers, fire alarms etc) but should a fire occur in spite of these mitigations it is vital that you know what your actions are to ensure that there is no business interruption or that disruption is kept to a minimum. Gates Aviation also offers Business Continuity advice, expertise and training.
It is necessary to ensure that the mitigation options in place are reviewed on a regular basis to see whether they are still valid. Risk control options are generated and evaluated in terms of potential risk reduction, resources required and other costs and business benefits. If the cost of the control (or mitigation) exceeds the cost to the business should the risk occur, it is important to review the mitigation option or the benefits of taking the risk in the first place. Gates Aviation can assist in reviewing a company’s risk appetite.
The most tangible benefit of Risk Management is that it could significantly lower your insurance premium. It is important to show your insurance broker how you manage your risks and this allows them to make a judgement on how risky your company is. This could then be reflected in your insurance premium. More recently insurance companies have been reluctant to even insure companies if they are not managing their risks well or do not have sufficient contingency plans in place to deal with an event should it occur. Gates Aviation can assist in your preparation for proving how well you manage your risks.
Gates Aviation offer advice on which Risk Management software systems are of value and which would suit your company.
Emergencies & Contingencies
It is, perhaps, too glib to suggest that “failing to prepare is preparing for failure”. Others might suggest that it is better to be prepared for something that doesn’t happen than to be unprepared for something that does. Either way, the value of having a set of well-considered contingency plans readily to hand cannot be underestimated when something goes seriously wrong for your business.
It is essential that contingency plans are reviewed regularly to ensure that they are up to date, particularly as processes and priorities change over time. This also ensures that the correct resource levels, capabilities and key information are identified and made available to those who may need to response to a real event, perhaps out of office hours. Gates Aviation can assist by developing your understanding of the need for prior agreements to be in place with third parties such as local authorities, airports and emergency services.
With years of ‘hands-on’ experience in developing contingencies and responding to real events, our consultants will be able to identify any areas of vulnerability and recommend corrective action to ensure that suitable provision has been made to enhance the plans.
Partners and senior consultants within Gates Aviation have many years experience in planning for, and hands-on response to, major incidents and can readily empathise with organisations that may not yet have had the opportunity to develop the techniques and processes needed to protect the business. It is vital to get a good level of corporate understanding for the need for these processes to ensure that the whole company is supporting the response consistently, should the plan need to be used in anger. This includes definition of emergency response policies and procedures that are clear and concise for all to understand.
An emergency plan outlines in writing what should be done after an accident, or major incident, and who is responsible for each action. Emergency response and crisis management plans must be established to facilitate the management of events that have the potential to damage the company’s reputation and mitigate the impact on normal business operations, including the fulfilment of legal obligations. Plans must be developed for each location to which the company will operate and must include ways of interacting with the main accident co-ordination centre. Staff must be trained in the implementation of such plans and rehearsals should take place routinely. It is our intention that whatever process we design, it is compatible with the corporate culture and can integrate easily alongside other existing company arrangements (e.g. PR agency retained by the company).
Contingency planning requires assessment of key areas of business risk which can then be used to ensure a controlled and organised response to any form of business disruption. Before any of this can be accomplished, it is important to understand the degree of risk to the business posed by various forms of threat. Gates Aviation also offers Risk Management.