Risk transformation is about how to mitigate

risk In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...

and in parallel develop

competitive advantage In business, a competitive advantage is an attribute that allows an organization to outperform its competitors. A competitive advantage may include access to natural resources, such as high-grade ores or a low-cost power source, highly skille ...

s. The goals of risk transformation are first to combat risk and secondly to differentiate and create solutions for the benefits of clients/users. Risk may include

financial Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

risk, security/safety-related risks,

uncertainty Uncertainty or incertitude refers to situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown, and is particularly relevant for decision ...

, and risk through action or lack of action. Variance Management Transformation: Variance management involves managing the difference between actual performance and the standard (Montgomery, 2009). This is done by identifying the potential variance (gap) and finding solutions in case the variance occurs. Operational variances can be avoided, whereas key variances can be managed (Bednar, 2020, p. 80). Both types of variance can be viewed as risk; understanding how to manage the risk will ease uncertainty. True variance management solutions can have a positive impact if the variance occurs.

Roles

Risk transformation is relevant in many areas, such as: *

Regulatory Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. Fo ...

risks, involving compliance or lack of compliance * Risk related to

management Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a Government agency, government bodies through business administration, Nonprofit studies, nonprofit management, or the political s ...

and operations * Organizational risk *

Project management Project management is the process of supervising the work of a Project team, team to achieve all project goals within the given constraints. This information is usually described in project initiation documentation, project documentation, crea ...

risk * Systems implementation and technical support risks * Strategy risk, related to strategy development and execution, or lack of strategy * Functional risks, such as within

sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred ...

marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...

, logistics, production, and finance * Security/safety risks, including attacks related to terror,

criminals In ordinary language, a crime is an unlawful act punishable by a state or other authority. The term ''crime'' does not, in modern criminal law, have any simple and universally accepted definition,Farmer, Lindsay: "Crime, definitions of", in Cane ...

and attacks on countries and organisations from other nations

Roles

References

Further reading