The Relationship Between Risk and Workflow
Risk and workflow are closely related as the workflow of a business can be a source of risk if not properly managed. Workflow refers to the series of steps and processes involved in completing a task or a business process. Any inefficiency or bottleneck in the workflow can result in delays, errors, or non-compliance with regulations, leading to potential risks for the business.
On the other hand, identifying and managing risks in a business process can help improve workflow by eliminating inefficiencies, reducing errors, and ensuring compliance with regulations. By incorporating risk management into workflow processes, businesses can proactively identify and mitigate potential risks before they occur, leading to a smoother and more efficient workflow.
For example, a business may identify a risk related to its sales process, such as a potential violation of anti-bribery regulations. By implementing controls to prevent such violations, such as training for sales staff and monitoring of sales activities, the business can improve the workflow of the sales process and reduce the risk of regulatory penalties and reputational damage.