insights.jpg

9 Risk-Free Ways To Enhance And Enrich Your Risk Analysis

By Tom Read

9 Ways To Improve Risk Analysis At Your Security Agency Your government agency is beset with security risk on all sides: insider threats, external dangers, natural catastrophes and any number of other risks. 

As an agency executive, it’s your job to manage and monitor all of these security risks, ensuring that none of them escalate into a full-blown incident. Yet, you’re also constrained by a tight schedule and limited budget. 

Fortunately, a robust risk analysis helps you track and control those risks effectively so your time and budget are allocated in the best way possible. While we’ve already covered the basic principles and practices of the risk analysis process, the intensity of risks – and the repercussions of an incident – are too high to conduct only a surface-level analysis for your national defense or federal security agency. 

Here are nine ways to enhance and enrich your current risk analysis efforts so your time and budget are optimized for the most effective risk management and monitoring:

1. Commit To Measurement

You can’t monitor what you don’t measure. Robust risk analysis requires that you are willing and able to measure all facets of security, operations and human resources – or you end up wasting your risk analysis dollars. 

2. Build Lightweight Tools 

Don’t be ensnared by the temptation of big, expensive data analysis tools when simple, lightweight tools achieve the same result just as well. Use your extra budget savings to invest in more risk mitigation efforts to avoid future incidents altogether. 

3. Define Incident Costs

A surface-level risk analysis fails to firmly calculate the costs of a particular incident, an approach that may translate into misplaced priorities and uninformed efforts. For more in-depth risk analysis, you must determine the specific costs of all possible incidents so that you’re able to properly rank your risk management budget for the highest-priority line items. 

4. Think Like An Adjustor 

Your risk management process should be similar to the practice of insurance adjustment. Adjustors calculate the probability of different variables, events and catastrophes and then prioritize their spending and budgets likewise. For better risk analysis at your defense or security agency, you should follow suit. 

5. Embrace Quantitative Techniques 

Risk analysis is a quantitative discipline, and it requires quantitative skills to execute correctly. In order to build risk analysis dashboards and formulate effective Key Risk Indicators (KRIs), you must embrace the quantitative side of risk analysis. 

6. Position Your Portfolio Around Risk 

An in-depth, quantitative risk analysis helps you determine where to spend your risk mitigation budget, especially since there are so many different mitigation strategies out there. In turn, you’re able to better allocate your spending portfolio and position it around the results of your risk analysis. 

7. Keep Risk Scoring Simple 

When you first conduct your risk analysis, start with the simplest possible risk-scoring system for different people, systems and processes. Your first risk-scoring system doesn’t have to be perfect; rather, just iterate and make it better as you go. 

8. Stay Abreast With Technology 

Technology changes fast in the security and risk analysis realm, so it’s critical that you consistently stay up to date on new products and solutions. Large, legacy providers of data analysis tools may be too unresponsive to create the risk mitigation solution that you actually need. The only way to know if they’re falling behind is if you stay ahead yourself. 

9. Automate When Possible 

The risk management process doesn’t always have to be conducted by people. Instead, seek opportunities for automation with quick, agile tools that can be reconfigured when necessary. When basic functions are automated, you free up more time to address your most pressing risks and incidents.  

Enhancing and enriching your risk analysis activities doesn’t have to be difficult, especially with readily available tools to help you get started. Once you begin to invest more time and effort into robust analysis, the potential for risk escalation begins to disappear.  

Need to improve the risk management process at your defense or security agency? Only have a limited budget to get started? Click below to download this e-book from Big Sky Associates and discover how to make process improvement efforts more cost-effective for your government agency. 

Download Your Free Report: The Ultimate Process Improvement Guide From Initial Data Analysis To Final Implementation Plan