Managing risk is paramount. A key part of the evaluation of outsourcing rests in the clear definition of risk, how it should be managed, and aligned to the organizations’ appetite of risk. This measures the effectiveness of partnering with outsourcing specialists. It will assist you in evaluation and measurement to get the best out of your outsourcing partners.
Recent research (Deloitte, 2020) shows that an outsourcing specialist’s customer value proposition should define how they aim to manage operational risk. This should be clearly articulated to best scope the organization’s requirements and expectations. A responsive risk framework will underpin this methodology and will satisfy all internal stakeholders. The infographic above shows why some organisations are likely to outsource, and trends indicate that outsourcing companies' management capabilities are increasing.
The 3 components of a robust risk management framework for workplace services would comprise of: 1. The board requirements, 2. Customer experience delivery standards, and 3. Health, safety, and security protocols.
The board sets the tone. Your board evaluates risk around their organizational vision and risk appetite statement, the management strategy, and a sound risk management framework for the company. This allows the board to set the “direction” and align the outsourcing delivery around the desired organizational culture. This serves as a template to guide outsourcing partners on how to succeed based on clearly articulated and measurable outcomes.
Customer delivery standards rest on performance and reliability. This in turn, guarantees competence and conformation to desired contractual compliance to safeguard the risk “guardrails” that ensure compliance with relevant legislation. Risk expectations are significantly lowered through a sound business continuity plan, managing unexpected business rhythms and flows that may otherwise result in service delivery gaps. Information security and tightened processes around safety issues will ensure that risk protocols are measured and monitored.
The 3rd pillar of risk compliance is the health, safety, and security of workplace service partners. Workplace services are best managed by trained and competent, subject matter experts and licensed providers, that offset risk parameters stated in the risk appetite statement of the board. This is considered best practice in managing risk in workplace services.
In our experience, we have observed alignment to the risk statement, promotes a more a risk-aware culture that encourages ethical behaviours, supportive networks, appropriate incentives, and significant transparency with your outsourcing partners in the workplace.
Infusing risk management into workplace strategy should be the prime objective. Measuring risk will embed continuous risk evaluations into non-financial risks that engage employees at all levels, creating a heightened employee experience. This will underpin the whole customer experience for all visitors to your organisation.
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