‘You can master a crisis best by anticipating it.’- Walt Whitman Rostow
Does your early warning system give you the information you need? How well is it developed?
Strategic early warning
Strategic early warning is an important element of risk management, often referred to as Early Warning System. Strategic early warning helps companies to better anticipate the developments and challenges of the future. This is essential, because if a company is being caught by surprise by a crisis, it will usually only be able to react instead of being able to act. Without any early warning system, the entrepreneurial scope of action suddenly becomes very narrow. However, a structured early warning system will, similar to a risk radar, allow you to anticipate and reduce unpleasant surprise moments.
Have you checked your strategic early warning system recently?
Early Warning System (EWS) –Audit
External as well as internal influences can cause deficiencies in your company. The analysis of various companies has shown that deficiencies are usually not the result of individual causes, but of multiple factors combined. The continuous work of a functioning early warning system allows you to detect these risks early and to make them visible.
Companies also often get into critical situations because of their so-called “Operational Blindness”, their lack of an external perspective that is not biased by particular interests, that is objective and not part of the system, and allows the company to identify weaknesses early and initiates the necessary corrections. A company-intern perspective often leads to a one-sided perception of the identified warning signals. This again can lead to misjudgments of company risks. Because of the fact that such problems are occurring again and again, businesses are well-advised to check their early warning system regularly with the aid of external specialists, in order to create a “counterbalance” to the internal perspective.
Within the scope of our audit services, we offer you a systematic, unbiased analysis and evaluation of your early warning systems. Conventional EWS can lead companies to falsely belief that everything is always predictable and thereby create a treacherous feeling of safety. Efficient early warning systems, which conform to the needs of the particular company, not only forecast threatening developments; they also enable a continuous reflection on the company’s own perceptions. This sharpened awareness will enable you to keep complex issues transparent, as well as systematically enhance your risk awareness and constantly keep developing it.
In the context of increasing demands for early warning systems, it is lucrative for businesses to employ advisory services of recognized specialists. Because of our longtime experience in practical auditing, we are the ideal partner in regard to the development und auditing of your EWS. Together with you, we will work out appropriate solutions and make sure that the investments you’ve made for the EWS are being used in a benefitting way. Hereby, long-term additional value can be generated.
Tools for Early Warning
Early warning systems with focus on risk management / risk analysis are rarely mere technical systems; on the contrary, they often consist of a whole system, which is being supported by suitable technologies.
In the context of a risk analysis, it is necessary to work out the proper tools, early warning indicators, alarm thresholds and weak signals. In the EWS relevant organizational and personnel aspects are also being defined. Eventually, it is crucial to regularly check these premises, because indicators that have been developed can only be efficient, if they are held together by a concept of strategic early warning.
Conceptual Work: well planned, time-saving
Surprises can occur again and again. However, by implementing an effective early warning system, you drastically enhance your chances of identifying unexpected dangers and of reacting to them properly. For these purposes, there is by now highly efficient software available which we gladly point out to you.You want to know more?