François Tabourot, MEGA’s Executive Vice-President, shows how operational excellence is a way for organizations to improve their business performance by optimizing resources and business processes, and ensuring governance.
Traditionally, the assessment of a risk’s severity comes down to its financial impact. A potential loss value is attributed to the risk, based on previous events, statistical data, and/or mathematical models. This approach is relatively straightforward and easy to understand. It has become a regular risk management practice, especially within the financial industry. In this vertical, it is mandatory that the company’s equity cover its risk exposure and it adequately judge whether the liquidity of the company’s equity is sufficient. But does this practice truly suit the coverage of risks that don’t stem from financial operations?
We know that business activities generate risks. As the saying goes, “the bigger the risk, the bigger the reward”. It means that when companies achieve success, they often do so by exposing themselves to larger risks. An organization performs well when
the risks that could jeopardize operations are under suitable and effective control. [...]
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