A company's risks

Companies today are exposed to a wide range of hazards through liability risks - as we read every day in the press. In order to handle these risks expediently and efficiently the first indispensable step is to assess and depict the company´s risk situation. The mere existence of a risk does not always mean a threat to a company's survival or a significant weakening of its position.

A risk is understood to mean the danger that events or actions may prevent a company from accomplishing its objectives or successfully implementing its strategies - in other words, the danger presented by all events or actions that jeopardise the success or continued existence of the company. Bodily injury, property damage, and financial losses may take many forms and have far-reaching effects especially in the liability area.

In addition to support processes (e.g. environmental management, project management, information management) and core processes (suppliers, research and development), there are other potential sources of danger to a company: production (deficient production due to a lack of quality management, poor fire protection), the workforce (unreliability, sabotage, industrial espionage), customers (just a few main customers - losing one may lead to the company's economic ruin), management (inadequate monitoring of business processes, unwise investments), and external processes (seizure of assets abroad, natural catastrophes, currency risks, delayed delivery of raw materials, a competitor's policy of price dumping).

These risks may impact at very short notice, but they may also prove to be the result of gradual processes.