What does risk entail for companies that operate on both local and global scales?
Quite a lot, actually, according to this infographic, Risk Components By Type, produced by Risk Management Magazine. The infographic breaks down this topic into four main categories: strategic, operational, financial/legal and insurable hazards. For big companies with supply chains and workforces that span the globe, a bulk of this sits in the operational and legal/financial categories, especially in terms of compliance. While smaller companies may share some of this risk, they are more vulnerable to changing demographics and fluctuations in available talent, categorized within strategy and operation.
Notably, one risk that applies equally to small and big companies alike is workplace injury. For small companies, workers compensation claims and high premiums due to big injuries can be crippling, while big companies can find their profits seriously degraded as they struggle to accommodate the costs of caring for wide and diverse workforces.
Whether it means putting an ergonomics program in place or thoroughly investigating an out of country supplier, adopting a mentality of prevention and constant analysis is crucial for avoiding and mitigating risk. What kinds of risk do you see your company consistently struggle with? Let us know in the comments below.