What do the insolvency of a major customer, the resignation of a key account manager, and workplace accidents have in common? They are all risks that organizations must actively manage. And these are only a few examples. According to a PwC survey, nearly half of respondents identified cyber risks as the greatest threat for 2024. More than 40% are concerned about inflation. Given the wide range of potential threats and their growing unpredictability, Robert Paffen (Leader Risk & Regulatory at PwC Germany) warns: “Companies can no longer afford to rely on a reactive approach that focuses primarily on avoiding risks.”
Risk management including hazard assessment
Risks are always associated with opportunities. For example, every new product launched to the market may succeed—or fail, potentially affecting financial results. At the same time, decision-makers are required to address risks systematically. With RS Risk Management, companies can establish comprehensive risk management with minimal effort. The solution complies with the guidelines of ISO 31000 and legal requirements for corporate risk management. It supports executive boards, supervisory boards, and auditors in setting up an early risk detection system as required by KonTraG (German Act on Control and Transparency in Business). In addition, the legally required hazard assessment under occupational safety law is fully integrated.
Managing risks as a continuous cycle
Risk management has both a process and a cultural dimension. Well-designed processes foster a strong risk culture by encouraging managers and employees to regularly engage with potential threats. Risk awareness becomes part of daily practice. RS Risk Management covers the entire risk management cycle:
Phase 1: Risk identification
To achieve a high level of protection, organizations must first identify their risks. The list will never be complete, but every additional entry reduces uncertainty.
Typical risk categories include:
- Employee absences or workplace injuries
- Material damage caused by weather events, improper actions, negligence, or deliberate sabotage
- Declining product quality or the loss of key customer contacts leading to customer churn
- IT system failures or cyberattacks affecting business operations
- Data protection gaps that may result in GDPR violations
Unexpected price increases, supply chain disruptions, rising energy costs, or declining demand - the list goes on...: The good news: every documented risk changes from an unpredictable threat into a manageable factor..
Phase 2: Risk assessment
Once risks are documented in RS Risk Management, they are evaluated. Each risk entry can be supplemented with any number of documents to support assessment.
Risk severity is determined by two factors:
• Potential impact
• Probability of occurrence
Some risks are negligible—for example, the loss of inexpensive promotional items. Others, such as industrial espionage, occur less frequently but can cause significant damage, which is why companies invest heavily in protective measures..
Since risk management focuses on future events, assessments are often based on expert judgment. Relevance can also change over time. RS Risk Management automatically calculates expected values based on impact and probability and provides common visualizations such as risk matrices and traffic-light systems.
Phase 3: Risk mitigation
Risk mitigation is a team effort. Risks are prioritized by urgency and assigned appropriate measures. RS Risk Management allows risks to be linked to specific projects, departments, or responsibilities. Examples include:
- Customer surveys to reduce churn risk
- Additional insurance coverage for liability and extreme weather events
- Expanded maintenance contracts and the implementation of RS Maintenance to improve operational reliability and fire safety RS Maintenance implementiert.
- Negotiation of new credit lines to prevent liquidity shortages
Protective measures vary by organization. The key is having an integrated overview and leveraging company-wide knowledge to define effective actions.
Phase 4: Risk monitoring
Most importantly: stay engaged. In RS Risk Management, tasks, activities, and projects—such as occupational safety training or IT security enhancements—are linked directly to specific risks. Progress in prevention strategies becomes transparent. To avoid “out of sight, out of mind,” the solution includes reminder and follow-up features that ensure continuous review. This strengthens risk awareness, improves risk culture, enables reassessment, and supports continuous improvement.
RS Risk Management is part of our comprehensive RS Security Suite. Together with you, we identify vulnerabilities in your business processes and close them systematically. Get in touch with us and take your risk management to the next level.