It may sound obvious but it’s essential for businesses to manage and reduce risks wherever possible.
Some businesses concentrate all their efforts on sales without giving adequate thought to understanding and covering potential risks.
After all, when businesses fail, it can be horrendous experience for owners who have invested blood, sweat and tears and often a good deal of their own money
Therefore, risk management, is vital if any business is to grow and succeed in the long term.
However, only the most capable and sensible businesses manage to achieve a consistent level of success. They do this through effectively utilising their data and analytics – but what specific roles do they have within a given company?
Here are some examples of how understanding and management of data and analytics can cut risk levels for businesses.
Risk management systems
Sometimes, even data management can be risky in and of itself, as can accumulating and browsing analytic information.
It’s a process which requires an enormous amount of sifting through information, organising it, and working out what is and isn’t relevant.
Legal regulations must be adhered to as well.
To put it simply, data can be a time consuming task and one that’s difficult to manage if left unchecked.
An automated risk management information system (RMIS) is faster, more accurate and more reliable than an employee manually keeping records on an Excel spreadsheet.
This is because it can filter out unimportant data and ensure that anyone browsing the information is only viewing relevant or critical material. It’s can be a time saver, and thus a money saver too in business terms.
The terms data and analytics are relatively broad. However, they can include; customer data, employee data, costs, business performance statistics, marketing research, company processes, etc. It’s all historical data and referred to as ‘descriptive analytics’ too.
This is key information that can’t afford to be lost or stolen and would be severely detrimental to a business if compromised.
Every success, failure, misstep, budget and audit scheme, pension plan and glitch in the system can be correlated back to data and analytics. From here, workers and business owners can gleam a sense of the journey they’ve been on; where they went wrong, how they improved, how they could improve processes.
It’s not all about the past either. Data and analytics give firms real-time updates on their customer engagement, allowing them to assess where their audience is coming from. What drove them to the company website. What perhaps puts them off It’s all key information that can’t be ignored, because it all relates in some way to trends in the market in which that business operates.
For example, call tracking services allow firms to link their phone sales to their digital marketing activity, and helps them to determine which keywords, channels and campaigns most influence incoming calls and phone sales.
Moreover, SEO strategies can enlighten businesses on the performance of their website; who’s reading their articles? Who clicks away, and why? Ultimately, data and analytics provide real-time insight too!
Data and analytics are pivotal to enable companies to formulate and carry out their strategies.
It’s their wisdom and experience, their present and their future – encompassing everything a company has to offer. Eliminating risks in this area will help ensure that businesses are not only more confident in their processes but will increase business levels too – and all this whilst abiding by the current data regulations and requirements.