Risk management is the process by which a business identifies and assesses all the activities it undertakes. This broad concept encompasses various operations, including addressing errors, accidents, legal liabilities, meeting deadlines, managing miscommunications, and more.
Why Proper Risk Management Is Crucial for Your Business
Having a comprehensive overview of your entire operation is essential in a modern business. A robust overview of your business is synonymous with effective risk management. Today, many businesses still rely on outdated practices, such as pen and paper or software ill-suited for handling complex data that often accompanies large business dealings.
Consequently, this can make it challenging for businesses to gain insight into various stages of their operations, such as the number of active locations, the status of sites and assets, and the efficiency of task completion.
Common Errors and Their Impact on Your Business
1. Human Errors
It's no surprise that humans make mistakes. These errors can stem from a lack of skill, miscommunication, or inadequate preparation for the task at hand. Research indicates that a staggering 50% of equipment fails prematurely after maintenance work, incurring significant costs in terms of additional man-hours, delays, and the need for new equipment.
2. Inaccurate Data
Today's regulatory demands elevate the risk of inaccurate data entry. As previously mentioned, many companies continue to rely on pen and paper or employ multiple software programs that aren't tailored to their specific requirements. This reliance on outdated methods increases the potential for data handling errors, often due to data loss or miscommunication-related data gaps.
3. Lack of Error Protection
Errors are an inherent part of any operation, and this is unlikely to change. However, what measures does your organization have in place to guard against these errors? In many cases, the individuals responsible for maintenance or service tasks are the last line of defense. If they fail to identify an error, it may go uncorrected, leading to potential issues. This includes ensuring work is conducted on the correct component, using the appropriate equipment, and documenting the task correctly to meet regulatory demands.
Improving Risk Management for Your Business
The ideal approach to enhancing risk management depends on the unique goals and needs of each business. Nevertheless, there are solutions available that provide a more transparent perspective of your operations.
IntelliFinder is a location-based project planning tool specifically designed for companies involved in service and maintenance. It allows businesses to track their operations, ensure accurate documentation, and gain a comprehensive overview of every site and asset under their management.
When it comes to some of the risks mentioned earlier in the post, IntelliFinder helps to reduce these issues. Some of the key features is that you can map out every site and asset that you are working on by using RFID/NFC technology. These sites can be linked directly to a QR code or a barcode so that when scanned it will take the technician to the tasks related to that site. This also helps protect against errors, for example if a technician is at the wrong site or he forgets to document certain things related to the task at hand.
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