Minimise the occurrence of risk by following these 10 tips for business optimisation from Aurecon's Risk Leader - Program Advisory Simon Van Wyk.

Thinking

Risk and reward: Top 10 tips on business optimisation

Risks are inevitable when forging a path to success. Fortunately, there are ways to minimise their occurrence – enter optimisation, the conduit between risk and reward logic.

As the word suggests, optimisation is the efficient use of choices, investments, resources, and disruption (i.e. new business models, digital technology, etc.) to increase the chances of success in high-risk environments.

How do we make use of optimisation to ensure our business’s success? IBM established that to optimise, one needs to understand its elements and how to leverage foundational notions that must be in place, such as business agility, for the business performance to be realistic, sustainable, and able to provide for continuous improvement.

Top 10 tips to improve business success

Here are 10 tips for business optimisation when viewed through the ‘risk-lens’:

  1. Augment the business operational model at a rate, cost, quality and predictability consistent with strategic needs
  2. Monitor real-time business events using new combinations of technology
  3. Provide corrective actions or organisational change as an enabler for sustaining business outcomes
  4. Enable operational dexterity to address agility and complexity gaps identified by executives
  5. Optimise business performance based on well-defined points of agility
  6. Optimise the process of change (like going digital)
  7. Holistically use digital and business operational change as an enabler
  8. Achieve better business outcomes from data and processes in the business (machine learning applications can add substantial value for repetitive applications)
  9. Real-time insight and monitoring to improve decision-making
  10. Liberate business from the rigidity and fragility of existing applications that hard-code processes and operational regimes

Businesses always leave room for improvement in the hopes of exceeding their current performance. By applying optimisation practices to business processes, business owners and executives are liberated from the rigidity and fragility of their existing applications.

The common rationale in the industry is that systems and processes are solely designed to meet compliance and governance imperatives. This belief tends to overlook that the value proposition of these practices ultimately lies in their ability to produce outputs of a greater tangible value. If we are to delve deeper into the realities of the perceived value created by these systems and processes, we can conclude that optimisation is indeed the key ingredient to attaining success.

Read Part 2 – Risk in context: Identifying blind spots


About the Author

Simon Van Wyk is Aurecon's Risk Leader, Program Advisory. He has 19 years of experience in risk management and advisory in different countries, including Australia, United Arab Emirates, China, and South Africa.


Originally published as LinkedIn Pulse, “Risk it like Yoda — succeed we must; optimise we shall” by Simon Van Wyk.

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