Understanding risk through Maintenance and Monitoring

Understanding risk through
Maintenance and Monitoring

Imagine being able to run a monitor over the backbone of your business and determine the probabilities of a loss or the heightened risk. How would that change your perception of risk in your business?

Your business back bone is really “the spine”. Seems appropriate really as many businesses of all shapes and sizes determine their success and structure on the strength of the company’s financial reporting and culture - it’s back bone. How well does your reporting stand up to scrutiny?

There are a number of different models being made available to business owners to test strategies and financial planning without having to go to great risk of putting a plan into action and finding out 12 months later that it was a waste of time, putting the business into peril. The terms used are modelling and reading the dash board of results. This is using the known data, but they don’t use the soft data to arrive at the correct results.

The soft data could, if it were measurable and perceived to be correct, determine the success or failure of a venture or strategy.

What would it be like to be able to run a monitor down the financial spine of the company and determine the risk associated with each section of the spine being measured? Recently I have been under the care of a Chiropractor for my spine and through gentle manipulation it has actually improved many other factors of my life which one would have thought was impossible.

I failed to realize and I think many other people fail to realize that the spine is actually a channel of communication from the various parts of our body to our brain. When the spine is not functioning correctly due to lack of maintenance or due to an injury the body system fails to operate as it should as determined by the processor (the brain). The brain tends to overcompensate. The brain even tell us stories that may not even be true. The brain can also go into overdrive creating fatigue with the side effects of depression and anxiety.

The Chiropractor has a monitor which is placed onto the spine . It determines the areas that are in stress and need to be repaired or realigned to ensure that the body and brain is able to function as it should. So the body is able to be used at an optimal level with out the threat or risk of burn out and fatigue.

Imagine if we could apply the same principles to running our own businesses and understanding not only the known risks but the unknown risks. The channel of communication, the flow of information would enable the ‘nerve centre “of the business to understand what was going on in the business at any one time. The stress levels were maintained and the business could be run at an optimal level. This would surely be better that letting the nerve centre go into overdrive and burn out.

The monitor would not only deal with the hard data but also the soft data as it would recognize small shifts and changes in patterns and signals that are evident in every business daily. Although as many patterns and signals are so minor they are omitted until such time that the frequency of the patterns emerging reaches a tipping point. At this point we have a loss . An event can and often does occur. Often this loss is not insurable and it is difficult to determine the cause of loss such as a catastrophic event. A nexample is a company vehicle which has so many dents and scuff marks. Each imperfection is not worthy of claiming as it is under the excess. However when it comes time to return the vehicle to the leasing company the costs of repairs becomes excessive. The cost of repairs is not claimable as the damage done occurred on numerous occasions. The pattern was there for all to see but nothing was done.

The spinal monitor would have picked up these points, these patterns which were causing stress. The loss was so minor the management – the nerve centre was not aware and thus could not put measures in place to prevent any further damage being done. The monitor would have picked up the patterns.

What monitors do you have in your business to pick up these patterns? Or are the patterns in such low frequency or maybe high frequency but low value that the leadership does not recognize them! How much money are you losing daily to these patterns that are not being monitored until it is too late? What areas of your business would you need to have such monitors that would not only pick up financial risk but also human risk?

Rite Track NZ Limited can provide that monitoring for you and find those patterns and signals. We will not only recognize the signals and the symptoms but we will show ways of fixing the cause and the patterns that chip away at the bottom line of your business.

How much money can we save you? We can show you how your business can be healthier and show you ways of gaining growth of your business and your people. Example :How much money could you save in premiums and the payment of excess levels for motor vehicle claims? How much money would you be able to save due to reduced wastage of time and raw materials?

Our services and results are an investment in your business using the resources that you already have. We are not selling you something new that you may not ever need. We are providing to you our time and knowledge to help you define the risks known and unknown to ensure your growth and business health.

We don’t have a monitor to sell you. Instead we have the skills and the ability to show you how you can provide and develop your own monitoring to ensure that your business back bone and spine sends the right communication flow to your nerve centre.

To find out more, contact John Barley on +64 27 289-3162.