Ignoring Operational Risks?
Most of us are sure at some point we will need insurance on our cars. I am not addressing liability insurance that covers our impacts on others, that’s required. I am talking about the type of comprehensive insurance that covers losses that directly affect us. We see wrecks all the time and figure it is just a matter of time before we are affected. Therefore, most of us carry comprehensive insurance. Interestingly not all business leaders think this way when it comes to insuring their businesses against process risks.
I remember being in a presentation where we were showing how Epex optimizes business processes and eliminates risk. One of the more junior people in the room blurted out, “How much does Epex cost anyway?” Before I could address his question, the VP of Planning and Optimization for the client jumped in and said, “Last month we made a mistake that cost us $11 million. I have no doubt that if we had Epex, we would not have made that mistake.” For him the risk of making an expensive mistake was very real and removal of these risks by using Epex was good financial stewardship by their management team.
So why do other business leaders allow these risks to continue. Simple, because they don’t think they will make significant mistakes. I was literally told that, in almost those exact words, by a COO for a major operator. I am sure if management throws enough people and time towards double or triple checking everything, their organizations might make far fewer costly mistakes. So, they will continue to add people as they add activity without any benefits of being scalable. At Epex we focus on continually optimizing business processes which creates scalability and removes process risks. In all cases, the cost of Epex is far less than a sliver of the cost of one of those mistakes. Call us and let’s talk about process risk reduction. In just two short months we can have you optimized and, in a position to continuously improve.