Every business faces its share of uncertainty on a daily basis. Even if you think you’ve covered all the bases, risks have a way of showing up when you least expect them. Managing those threats properly can be the difference between steady growth and serious setbacks.
But building your own risk management team inside the company can take a lot of time and cost a pretty penny. Many businesses simply don’t have the resources to do it well on their own.
That’s why outsourcing risk management is gaining traction.
Outsourcing lets you work with people who spend their careers studying risks and know how to act fast when problems show up.
IBM reported that organisations that had an incident response (IR) team saved a lot of money when they had a data breach. On average, they saved US$2.66 millioncompared to those without an IR team and plan.
That’s a pretty significant saving (around 58%) in breach costs. What more when you outsource?
Let’s further break down what risk management is, why it’s critical for your business, and how outsourcing it can give you a competitive edge.
Risk managementis how businesses stay one step ahead of trouble. It’s the process of figuring out what could go wrong, how bad it could be, and what you can do about it.
That includes everything from market fluctuations to lawsuits, tech breakdowns, or natural disasters.
You’re not trying to erase every risk, because that’s not how the world works. What you’re doing is staying sharp. Risk management helps you make better decisions, take calculated chances, and recover faster if things take a turn.
Importance of Getting Risk Management Done Right
If you get risk management wrong, it’s not just about losing money. It could mean facing legal action, losing customer trust, or even closing shop.
PwC’s recent Global Risk Survey found that nearly eight in ten companies are strugglingto keep up with today’s risks, especially with all the digital threats and compliance rules piling up.
When you get it right, risk management becomes a strength. It lets you roll with economic punches, respond to new laws, and show your stakeholders that you’re in control.
It also makes it easier to move quickly, knowing someone’s looking out for what could trip you up.
7 Advantages of Outsourcing Risk Management
Don’t worry, you’re not pushing problems onto someone else when you choose to outsource risk management. You’d be teaming up with people who know how to spot trouble before it becomes a crisis.
Here’s what you get out of it:
1. Access to Specialised Expertise
People who work in risk management have spent years studying what makes businesses stumble and how they bounce back. They notice patterns that might not be obvious if you’re inside the company.
Outsourcing is a smart way to broaden that pool of expertise, as it might not be easy to find risk managers or related experts locally.
2. Cost Efficiency
Building your own risk team means more than just paying salaries. You’ll need to train them, buy tools, and keep everything running smoothly. Outsourcing helps you avoid those fixed costs.
In fact, you can save up to 70%in your labour and operational spending by outsourcing. Which is great if your business is still growing or managing a tight budget.
3. Better Tools and Technology
Specialist risk firms use tools built for the job. These could be technologies that track regulations, find weak spots, and simulate different risk scenarios.
You probably wouldn’t buy these tools yourself because they’re expensive and complex. But when you outsource, you get access to them anyway. It’s a simple way to work smarter without spending extra.
4. Scalability
Your business isn’t static. As you expand, shift focus, or try something new, your risks change too.
With outsourced support, you can adjust how much help you need at any time. That flexibility means you’re not overcommitted or underprepared.
5. Increased Objectivity
Someone from outside your companybrings a clean perspective. They’re not caught up in office politics or stuck in how things have always been done.
That helps you see blind spots and make clearer decisions. A neutral opinion can be more helpful than you’d expect.
6. Faster Response to Emerging Risks
Trends, threats, and rules evolve constantly. Risk management providers stay up to date, so you don’t have to chase every new headline.
When something changes, they’re already on it and ready to help. That responsiveness can save you time, money, and stress.
7. Focus on Core Business
Thinking about all the things that couldgo wrong is important, but it can pull you away from what you’re actually trying to do.
When you bring in outside help to manage those risks, your own team can put their energy into taking care of your customers, figuring out how to grow, or just building something solid that will stick around. Let the experts handle the ‘what ifs’ so you can focus on the ‘what’s next’.
Potential Challenges to Consider When You Outsource Risk Management
Loss of direct control– You’re handing over part of your operations to someone outside the company. If communication isn’t clear, mistakes happen.
Data security risks– Sharing sensitive info always comes with risk. Make sure your provider has strong data security policies.
Alignment issues– If the external team doesn’t get your business or culture, their advice might not hit the mark.
You don’t avoid these problems by staying in-house. You deal with them by setting expectations early, keeping communication open, and working with people who understand your business.
How to Choose the Right Outsourcing Risk Management Provider
When you’re picking a partner to help you with risk management, here’s what you should really pay attention to:
Do they get your world?You want someone who understands your industry. A company that usually works with banks might not have a clue about what a construction business deals with.
What have they actually done?It’s not enough to just take their word for it. Ask for real examples of their past work and what results they’ve gotten for other companies.
Do they follow the rules?They should be using well-known standards, like ISO 31000 or COSO. It shows they know what they’re doing.
Will they get along with your team?Can they talk to your people easily? Will they respect how you like to work? A good fit here makes a big difference.
Is it tailored to you?Risk management planning can’t be copied and pasted. The people you choose should be creating a plan that’s specifically designed for what your business needs.
Build a Successful Risk Management Outsourcing Strategy
Just handing off risk management isn’t the whole story. It works best when you’ve got a bit of a roadmap.
Here’s how to make it effective:
First, figure out what you’re up against.Run a risk audit and take a good look at all the potential threats your business faces and how big of a deal each one is.
Then, decide what you want to achieve.What does a win look like? Maybe it’s fewer problems with regulations or being able to handle incidents faster.
Get it all down in writing.Make sure you have clear agreements (SLAs) that spell out who’s doing what and how you’ll know if it’s working.
Have a point person on your end.Pick someone from your company who will be the main contact for the outside risk management team.
Don’t just set it and forget it.Things change, so you’ll want to check in on your plan every few months to make sure it still fits.
Strengthen Your Business with Outsourced Risk Management
No matter what you’re building or offering, there’s always going to be some level of uncertainty, some bumps in the road. What makes the difference isn’t avoiding every single potential issue (because you probably can’t) but how you handle things when they come up.
When you’ve got a solid team helping you see around those corners, you can react more quickly, make smarter moves, and just feel more ready for whatever the future throws your way.
Outsourcing risk management lets your company have that extra layer of confidence. You’re operating knowing you’ve got people in your corner who are thinking about the what-ifs, so you can keep your focus on the ‘what’s important right now’.
FAQs
What kinds of risks do businesses usually get outside help with?
You often see companies outsourcing things like keeping their IT systems secure, managing financial risks (like making sure they’re following the rules and preventing fraud), and, of course, just the day-to-day operational risks and staying on top of regulations.
How can paying someone else to handle risk management save me money?
You’re not having to hire a whole new team internally, pay their salaries, train them up, or buy all the software they’d need. You’re basically just paying for the expertise you need when you need it.
How do I make sure the people I hire for risk management get what my business is all about?
It’s super important to have in-depth chats with them right from the start about how your business works, the specific risks in your industry, and how much risk you’re comfortable with.
And then, just keep talking to them regularly and sharing information as you go.
What’s the difference between the ISO 31000 and COSO risk management frameworks?
Think of ISO 31000 as more of a set of general principles and guidelines for managing risk that can apply to pretty much any type of organisation. COSO is often more focused on internal controls and financial reporting, particularly in the US.
Get the right talent for your IT or digital business. And start scaling today.
To get a better idea of what you need, we just have a few basic questions and will get in touch shortly.
800+Highly skilled candidates placed
30+Industries served
25+Years experience
800+Highly skilled candidates placed
30+Industries served
25+Years experience
Thanks for your interest in joining Outsourced Staff!
We’re excited to learn more about you!
Please fill out the form below and attach your resume, portfolio, or an introduction video if you have one.
If we find a role that’s a great fit, we’ll be in touch. In the meantime, best of luck with your job search!
Book your free consultation today
To get a better idea of what you need, we just have a few basic questions and will get in touch shortly.
800+ Highly skilled
candidates placed
30+ Industries
served
25+ Years
experience
lead generation, customer, cost, efficiency, mobile app, sales outsourcing, customer service, employment, brand, web developer, business process outsourcing, cloud computing, offshoring, it service management, contract, risk, payroll, professional employer organization, infrastructure, scalability, research, supply chain, return on investment, remote work, retail, machine learning, software development, customer satisfaction, software as a service, time zone, quality assurance, value, telecommunications, revenue, staffing, intelligence, devops, search engine optimization, fintech, omnichannel, user interface, customer experience, strategic management, network monitoring, customer engagement, content moderation, virtual assistant, telephony, expert, customer support, support outsourcing, back office outsourcing, call center services, call center outsourcing, software development company, msp, outsourced contact center, software development outsourcing, contact center services, outsourcing providers, software outsourcing company, customer service outsourcing, employer, customer service solutions, customer support outsourcing, process outsourcing, software outsourcing, sales outsourcing services, offshore outsourcing, outsourced hr, outsource sales, outsource payroll, outsource hr for small business, outsource call center, rpo recruitment, rpo companies, outsource accounting, outsource hr services, outsource sales reps, computer hardware, data security, email marketing, skill, telemarketing, usability, latin, it infrastructure, workforce, agile software development, data science, php, regulation, business process, health care, accounting software, human resource management, quality of service, service quality, asset, chief technology officer, resource, business model, user experience, outsourcing software development, offshore software development, client, understanding, positive feedback, employee retention, request for proposal, user interface design, economic growth, exl service, strategic planning, table of contents, reputation, foundever, software testing, receptionist, nearshoring, vendor, wipro, workflow, data management, transport, outsourcing trends, outsourcing market, cloud solutions, contact center, outsourcing companies, hire, companies outsource, outsourced staff, service providers, outsourcing services, companies that outsource, bpo, enterprise software, react native, telus digital, ruby on rails, voice user interface, data entry, amazon echo, natural language processing, smart speaker, speech recognition, computer program, client intake, hiring virtual assistants, virtual assistant services, online chat, invoice, job description, expense, machine, microsoft excel, virtual reality, content management system, instant messaging, social media, proofreading, speech, salary, user, natural language, microsoft powerpoint, consumer, email management, web browser, interview, toptal, 401, latin america, law, paralegal, soft skills, turnover, executive search, paid time off, hybrid, equal opportunity, north america, remote hiring, remote talent, agencies, remote teams, employees, remote staffing, representative, associates, remote staffing solutions, remote temp agency, best remote recruiting companies, remote customer service staffing agency, remote temp agencies, wfh staffing agency, wfh temp agency, remote working recruitment agency, wfh staffing agencies, working from home recruitment agencies, remote recruitment agency, temp agency remote, staffing agency remote, customer success
Frequently Asked Questions
How do I ensure remote staff have necessary company knowledge?
To ensure remote staff have the necessary company knowledge, implement comprehensive onboarding processes, provide access to resources, and encourage regular communication and training sessions to keep them informed and aligned with company goals.
What are the advantages of hiring an outsourcing company?
The advantages of hiring an outsourcing company include cost savings, access to a global talent pool, increased efficiency, and the ability to focus on core business functions while leveraging specialized skills in tech, digital, engineering, and customer support.
How do outsourcing companies benefit small businesses?
Outsourcing companies benefit small businesses by providing access to skilled talent at reduced costs, enabling them to focus on core operations while efficiently scaling their teams with specialized professionals in tech, digital, engineering, and customer support.
How do I manage and track remote employee productivity?
Managing and tracking remote employee productivity involves utilizing tools such as project management software, regular check-ins, and performance metrics to ensure accountability and visibility into work progress.
What services does an outsourcing company typically offer?
Outsourcing companies typically offer services such as recruitment, payroll management, and administrative support, along with specialized roles in tech, digital marketing, engineering, and customer service to help businesses build efficient remote teams.
What are the benefits of hiring remote staff for my business?
The benefits of hiring remote staff for your business include significant cost savings, access to a global talent pool, and increased flexibility in scaling your team. This approach allows you to find skilled professionals from the Philippines and Eastern Europe efficiently.
What tasks can virtual assistants perform?
Virtual assistants can perform a wide range of tasks, including administrative support, customer service, social media management, data entry, and bookkeeping, helping businesses streamline operations and improve efficiency.
What tools are essential for effective remote team collaboration?
Essential tools for effective remote team collaboration include project management software like Trello or Asana, communication platforms such as Slack or Microsoft Teams, and file-sharing services like Google Drive or Dropbox, which facilitate seamless teamwork and information sharing.
How do I choose the right outsourcing company?
Choosing the right outsourcing company involves evaluating their expertise, industry experience, and client testimonials while ensuring they align with your specific needs and budget for building an efficient remote team.
Can an outsourcing company handle customer service?
Outsourcing companies can effectively handle customer service by providing trained professionals who manage inquiries, support, and feedback, ensuring quality service while helping businesses reduce costs and focus on core operations.
What is the benefit of hiring a virtual assistant?
The benefit of hiring a virtual assistant is that it allows businesses to save time and reduce costs while gaining access to skilled professionals who can handle various tasks, enabling teams to focus on core activities and enhance productivity.
How do virtual assistants improve productivity?
Virtual assistants improve productivity by handling routine tasks, allowing businesses to focus on core activities. They streamline processes, manage schedules, and provide support, ultimately enhancing efficiency and freeing up valuable time for strategic decision-making.
How does remote staffing differ from traditional hiring?
Remote staffing differs from traditional hiring in that it allows companies to access a global talent pool, reducing costs and increasing flexibility, while traditional hiring typically involves local candidates and in-person work arrangements.
What skills should remote staff possess?
The skills that remote staff should possess include strong communication abilities, self-discipline, adaptability to change, and proficiency in relevant technical tools. Additionally, problem-solving skills and a collaborative mindset are essential for effective teamwork in a remote environment.
How can I onboard remote employees effectively?
Effective onboarding of remote employees involves clear communication, structured training programs, and regular check-ins to ensure they feel integrated into the team and understand their roles and responsibilities.
What metrics measure remote employee performance?
Metrics that measure remote employee performance include productivity levels, quality of work, communication effectiveness, adherence to deadlines, and employee engagement scores. These indicators help assess the overall contribution and efficiency of remote team members.
How do I communicate with remote teams?
Effective communication with remote teams involves using collaboration tools like Slack or Zoom, setting clear expectations, scheduling regular check-ins, and fostering an open environment for feedback to ensure everyone is aligned and engaged.
What challenges do remote teams face?
The challenges remote teams face include communication barriers, time zone differences, and difficulties in collaboration, which can hinder productivity and team cohesion. Addressing these issues is essential for effective remote team management.
How can I foster team collaboration remotely?
Fostering team collaboration remotely involves utilizing effective communication tools, establishing clear goals, and encouraging regular check-ins. Additionally, promoting a culture of trust and inclusivity can enhance teamwork and engagement among remote staff.
What are common tasks for virtual assistants?
Common tasks for virtual assistants include managing schedules, handling emails, conducting research, data entry, social media management, and providing customer support. They help streamline operations, allowing businesses to focus on core activities.
How do I evaluate outsourcing company proposals?
Evaluating outsourcing company proposals involves assessing their expertise, understanding their pricing structure, reviewing client testimonials, and examining their communication processes to ensure they align with your project needs and goals.
What industries benefit most from outsourcing?
The industries that benefit most from outsourcing include technology, digital marketing, engineering, and customer support. These sectors leverage outsourcing to access specialized skills, reduce costs, and enhance operational efficiency.
How can outsourcing reduce operational costs?
Outsourcing can significantly reduce operational costs by allowing companies to hire skilled professionals from regions with lower labor expenses, minimizing overhead costs while maintaining high-quality service and efficiency in operations.
What are the risks of remote staffing?
The risks of remote staffing include potential communication barriers, cultural differences, security concerns, and challenges in managing remote teams effectively. These factors can impact productivity and collaboration if not properly addressed.
How do I ensure data security with outsourcing?
Ensuring data security with outsourcing involves implementing strict access controls, utilizing secure communication channels, and conducting regular audits. Additionally, partnering with reputable outsourcing firms that prioritize data protection can significantly enhance your security measures.
What is the process for hiring virtual assistants?
The process for hiring virtual assistants involves identifying your needs, selecting a reliable outsourcing partner, reviewing candidates, conducting interviews, and finalizing the hiring agreement to build an effective remote team tailored to your requirements.
How can I train remote staff effectively?
Training remote staff effectively involves setting clear expectations, utilizing collaborative tools for communication, providing comprehensive onboarding resources, and encouraging regular feedback to enhance performance and engagement.
What technology supports remote team management?
The technology that supports remote team management includes collaboration tools like Slack and Microsoft Teams, project management software such as Trello and Asana, and video conferencing platforms like Zoom. These tools enhance communication and streamline workflow for distributed teams.
How do I maintain company culture remotely?
Maintaining company culture remotely involves fostering open communication, encouraging team bonding through virtual activities, and regularly reinforcing company values. Prioritize feedback and recognition to create a sense of belonging among remote team members.
What are the best practices for remote hiring?
The best practices for remote hiring include clearly defining job roles, utilizing effective communication tools, conducting thorough interviews, and assessing candidates' remote work capabilities to ensure a successful integration into your team.
