If knowledge is power, then the lack of knowledge is a weakness. This is especially true in risk assessment. As a business leader, part of your job is to assess the risks your organization faces and find ways to minimize them. The main types of risks you face are:
- Legal – such as new compliance regulations that affect how you do business.
- Strategic – such as a new competitor edging in on your market.
- Financial – such as an unexpected increase in supply costs, unpaid receivables, or rising interest rates.
- Operational – such as the need for new equipment or a staff shortage.
Risk Assessment and Your LMS
Part of effective risk assessment is to not be taken by surprise by any number of hidden costs that may come up. Many companies – from small operations to Fortune 500 empires – have found ways to reduce risk through the implementation of a learning management system (LMS). Here’s how an LMS can help you:
Reduce overall training expenses. It used to be that managers would put off adopting an LMS because it took too long to see a return on their investment. Today, not all learning management systems require large up-front costs. In fact, some systems even allow you to buy training on a per seat basis. This can be helpful when your risk assessment reveals an immediate training need, but you don’t have the bandwidth to adopt a full-scale system.
Empower training managers. In business, ignorance is not bliss, it’s downright dangerous. For managers to mitigate risk, particularly legal risk, they have to be able to track training progress and performance. The reporting features in an LMS allow training managers to ensure that all employees have the training needed to protect the business.
Allow for quick response to change. All risk assessment strategies must include a reactionary plan. If a risk comes to fruition, how will you respond to it? Most learning management systems also serve as a central repository for company documents, promotions, policies, and procedures. When you’re faced with a strategic or operational challenge, you can use your LMS to quickly distribute a consistent message to the entire company.