Understanding the Risk Owner, Simply for Business Humans
- A risk owner is the person responsible for keeping an eye on a specific risk and making sure it's handled correctly.
Risk Owners in Small and Medium-Sized Businesses
In small and growing companies, risk ownership often falls to the owners and managers themselves. This is because they are the primary decision-makers and are directly responsible for managing risks. Risk management is therefore a natural part of business operations and is often not formalized. However, this doesn't mean that it's not happening in practice. Formalizing risk management is often a requirement due to legislation, such as in the area of occupational health and safety (OHS). Individual managers then manage risks within their scope of responsibility, for example:
- The CEO (Chief Executive Officer) is responsible for the overall risks of the company
- The CFO (Chief Financial Officer) is responsible for financial risks
- The Sales Director is responsible for sales risks
- The Construction Manager is responsible for risks on the construction site
- The OHS (Occupational Health and Safety) Manager is responsible for workplace safety risks
How Aptien Helps Owners Manage their Risks?
- If you have a risk management system in place, individual owners can see their own risks.
- They conduct regular risk reviews, and the system notifies them.
