Controlling operational risks through a SWOT study

Establish mechanisms to map external risks.

1. Form an external risk management team:

- Form a multidisciplinary team including experts in strategy, finance, legal, and other relevant fields to analyze external risks.

2. Identify potential external risks:

- List the external risks to which the organization could be exposed, such as economic, political, environmental, technological, or competitive risks.

3. Use external risk analysis tools:

- Select strategic analysis tools, such as the PESTEL method (Political, Economic, Social, Technological, Environmental, Legal), to structure the identification of external risks.

4. Collect and analyze external data:

- Gather information from external sources, such as market reports, economic forecasts, industry studies, and political analyses.

5. Assess the probability and impact of external risks:

- Analyze each external risk based on its probability of occurrence and its potential impact on the organization.

6. Create an external risk matrix:

- Develop a risk matrix that ranks external risks by probability and impact, allowing for prioritization of actions to be taken.

7. Set up a strategic monitoring system:

- Establish continuous monitoring to monitor changes in the external environment and detect new risks or developments in existing risks.

8. Train employees in external risk management:

- Organize training sessions to raise staff awareness of external risks and involve them in monitoring and responding to risks.

9. Carry out risk scenarios and simulations:

- Conduct simulation exercises to test the organization's resilience to identified external risks and to prepare contingency plans.

10. Document and communicate the results of the mapping:

- Prepare reports on the external risks identified, share them with management and stakeholders, and integrate this data into strategic planning.

11. Regularly review and update the external risk map:

- Establish a schedule for periodic review of the map to reflect changes in the external environment and adjust risk management strategies accordingly.