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Insurances - Risk management | publié par Loyco | 05.06.2024

Risk management and incident reporting: how do you go about it?

At the same time as implementing a risk management solution, organizations are clearly benefiting from the introduction of an incident reporting method, particularly for operational activities. But where to start? What are the pitfalls to avoid? Our Risk Management specialist, Grégoire Mottier, has taken a look at the issues involved, and offers a few pointers.

 

What is incident escalation?

Incident escalation, in the context of corporate risk management, refers to the process by which incidents or undesirable events are reported to the appropriate levels of the organizational structure. This process aims to identify, document and communicate incidents to enable an effective response, as well as to avoid their recurrence in the future.

 

Prerequisites

Incident reporting is a key element of corporate risk management, enabling a structured, proactive response to undesirable events, while fostering a culture of continuous improvement. But what are the prerequisites for an effective process?

  • A simple, practical feedback procedure: for example, with the creation of a form offering easy input, with a controlled number of questions.
  • Guaranteed confidentiality in the event of errors: in organizations of a certain size, errors or shortcomings in operational activities are inevitable. When they do occur, it’s vital that the identity of the person responsible for a specific failure or negligence is not stigmatized and pilloried!
  • A corporate culture that allows for the right to make mistakes: this is essential for a learning and innovation process. A company without mistakes is bland and unrealistic! Sharing mistakes is an essential part of a risk management and continuous improvement process.
  • Guaranteed feedback: after an incident has been reported, it’s up to the organization to give constructive feedback to the person concerned or their team. Let’s take this opportunity to celebrate the successful conclusion of an escalation with colleagues!
  • Assessing its criticality: the organization must establish a scale for gauging the impact of an operational incident. The criteria used could be, for example
    • The impact on sales.
    • The triggering event: is it an individual or collective error? A violation of an established process?
    • The identity of the stakeholders to be informed: business manager, team leader, management or even the Board of Directors?

 

What about profits?

Efficient incident escalation brings numerous benefits to the organization:

  • Improved reactivity and faster processing of operational errors.
  • Reduced costs due to fewer events leading to business interruptions or isolated losses.
  • Boosting future improvement processes, by collecting and questioning procedures.
  • In industrial environments, consolidation of compliance with regulatory requirements, demonstrating that the organization is effectively monitoring risks.
  • Prevent future incidents by analyzing causes and implementing measures.
  • Establishing a culture of transparency, fostering a climate of security in which stakeholders feel responsible and involved without fear of reprisal.

In conclusion, this approach creates an environment of transparency and trust, where every stakeholder takes pleasure in contributing to the company’s safety and excellence, transforming every incident into an opportunity for learning and collective intelligence!

 

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