Risk management means many things in the business world. It means making sure your inventory and secrets are not stolen internally or externally. It means hedging investments in areas that you can afford. In Microsoft Dynamics it means looking at the bigger picture of your whole company and determining what you can afford to lose along with how to protect what you have. Mostly it is about making sure that your company does not lose resources. The framework we hold so dear can help you with that in many ways we’re going to discuss.
As we have talked about previously we live in the information age. Many people think that information wants to be free. Usually your information that can ruin your livelihood, at minor risk to those who are spreading it. This is just how things are. Other times a competitor may pay huge amounts for your money. You really have to be careful there as one unscrupulous employee can really ruin everything for you there.
Compliance regulations are one area where risk management is a huge deal. Microsoft Dynamics stores quite a bit of information and if you break regulations on protecting the data you can have huge problems from major organizations in the government. Unless you are at the very top the industry and can pull in sway from politicians this can be a serious problem for it. It can lead to massive audits along with fines. In extreme circumstances it can even lead to jail time for some people in your company.
So what is the advantage of using Microsoft Dynamics with your other financial systems? You have a better view of your overall data. You can find leaks in your system faster and fix them. Banks are more likely to loan you money when you have detailed financial records of your transactions. Embezzlement is also much easier to spot at larger companies because otherwise it can simply fall through the cracks of your system.
Nonprofit organizations have to be especially careful when dealing with risk management. This is because they get many benefits that relay completely on the view of people that they are doing the right thing. When that goes away the government gets involved and if they lose their tax-exempt status it is simply over. There are no exceptions. If you try to find an exception then you are just asking for everything to fall apart. Fundraising software is just one part of what you need.
Of course once you have the data you need to be able to know how to use it. Search for amounts that are too large or small. Make sure that one person is not handling too much of the data. It can lead to theft or simple burn-out and errors. When dealing with larger companies a small error can amount to over 100K or more. That is not a small amount for anyone. That could be a serious bonus that turns an average employee into one who performs beyond expectations. Give it some thought and decide how to manage it yourself.