If your service business were to fall victim to a fire, theft, or health and safety disaster, it's not just your own operations and employees that can suffer as a result, but also your customers and partners.

Service businesses, like product manufacturers, face loss exposures‐sets of circumstances that could give rise to losses. The losses may never occur, but the firm must plan for the possibility that they will. Risk management involves the treatment of loss exposures in a cost‐effective manner to protect the firm against losses of an unexpected nature.

Service organizations protect their reputation and brand value through sound practices to manage service quality, as well as social responsibility in their supply chain. At the same time companies are challenged by emerging types of risks for which they need to develop effective mitigation plans; in their absence, the losses from serious risk events can be crippling. Service organizations are constantly challenged to meet consumers’ ever-changing tastes and needs, as well as consumer-protection regulations.

It’s how they deal with risks that can make the difference between success and failure and using our standards can help manage organizations manage these.

The Benefits of Implementing a Risk Management System

By implementing a risk management plan and considering the various potential risks or events before they occur, a service organization can save money and protect its future. 

This is because a robust risk management plan will help a company establish procedures to avoid potential threats, minimize their impact should they occur, and cope with the results. This ability to understand and control risk enables organizations to be more confident in their business decisions. Furthermore, strong corporate governance principles that focus specifically on risk management can help a company reach its goals.

Other important benefits of risk management include:

• Creates a safe and secure work environment for all staff and customers

• Increases the stability of business operations while also decreasing legal liability

• Provides protection from events that are detrimental to both the company and the environment

• Protects all involved people and assets from potential harm

• Helps establish the organization's insurance needs in order to save on unnecessary premiums

To read more on the topic of health and safety in the service industry, click here.

How Standards Support Risk Management in the Service Industry

Relevant in all markets and sectors, standard BS ISO 31000:2018 has been developed specifically for people who create and protect value in organizations by managing risks, making decisions, setting and achieving objectives, and improving performance. Whilst all organizations manage risk to some extent, this international standard’s best-practice recommendations were developed to improve management techniques and ensure safety and security in the workplace at all times.

It provides guidelines on managing the risks that organizations face. These guidelines can be customized to any organization and its context. BS ISO 31000:2018 also provides a common approach to managing any type of risk and is not industry- or sector-specific and can be used throughout the life of the organization and can be applied to any activity, including decision-making at all levels.

By implementing the principles and guidelines of BS ISO 31000 in your organization, you’ll be able to improve operational efficiency, governance, and stakeholder confidence, while minimizing losses. This international standard also helps you to boost health and safety performance, establish a strong foundation for decision making and encourage proactive management in all areas.

Want to access and manage the standards you need to manage risk and remain resilient - all in one place? With a BSI Knowledge subscription, you will have the flexibility and visibility to manage the essential standards you need to work confidently and optimize your processes. Build your own custom collection of standards, or opt for access to a pre-built module and keep up-to-date with any relevant changes to your standards strategy. Request to learn more.

Ensure your service organization is ready to face the challenges of tomorrow by adding standard BS ISO 31000 to your collection today.