The system allows for assessing possible threats to the business and reducing the likelihood of negative consequences, including reputational losses.
JSC PROGRESS, the leader¹ of the domestic baby food market, has digitalized its risk management using the RISK RADAR automated risk management system (ARMS). The system allows for assessing possible threats to the business and reducing the likelihood of negative consequences, including reputational losses..
Modern companies face a range of challenges daily, from strict requirements for product safety and quality to rapid business growth. Previously, risk management tools were unable to keep up with the speed and complexity of business processes. The Department of Operational and Financial Risk Management, led by Kristina Buyanova, has developed an ambitious strategy for the development of the Risk Management System for 2023-2025. One of the key goals is to create an automated system that can not only record incidents but also proactively manage challenges and opportunities..
Director for Operational and Financial Risk Management at PROGRESS JSC Kristina Buyanova:
"With the help of RISK RADAR, we have identified and processed more than 100 Risk Profiles in 14 areas of legal regulation and implemented more than 40 new control procedures. The speed of risk information exchange between departments has increased threefold, and the transparency of corporate management and the quality of decision-making have improved. Since the implementation of RISK RADAR, we have prevented losses exceeding RUB 3 billion. The system has already passed an external assessment. When assigning a credit rating to the company, experts from the National Rating Agency noted the moderately high level of development of the risk management system. This is a rare case where internal IT developments directly affect the financial assessment of a business.".
The company considered ready-made risk management systems, but chose to develop its own solution based on the Directum RX platform, which it has been using since 2020. The advantages of this solution include a user-friendly interface, flexible customization of workflows, reports, and widgets using no/low-code, and information security features. The project was implemented by an internal team of experts from the Department and IT specialists at PROGRESS JSC in a short timeframe, and the system was put into production in early 2024..
Viktor Shurygin, Head of Risk Management and Internal Control at PROGRESS JSC:
«RISK RADAR has fundamentally changed the way we manage our risk management system. In real time, I can see how the risk load is distributed across our departments, allowing us to quickly focus our resources on the most important activities and monitor their effectiveness. We have created an environment where risks are managed rather than reported on»..
The RISK RADAR project is not a final destination, but an ever-evolving ecosystem. Due to its integration into the management process, the ASUR is dynamically developing and evolving in accordance with market conditions and business requirements. In the foreseeable future, it is planned to supplement the existing set of measures and implement the following steps:.
- Transfer of comprehensive automated BI reporting from Microsoft to the internal Directum RX platform.
- Implementation of artificial intelligence tools built into Directum RX for automatic integrated risk assessment.
- Development of residual risk assessment functionality and implementation of key risk indicators (KRI).
- Creation of a unified knowledge base on risk factors and consequences.
PROGRESS continues to develop in the field of digitalization of production processes and implementation of modern solutions, which corresponds to the goals and objectives of the state program for the implementation of the digital economy. In this regard, the emergence of RISK RADAR ASUR is an example of how the strategic vision of management, the expertise of risk managers, and the capabilities of a flexible domestic platform have allowed for the creation of not just an IT solution, but a real competitive asset. The system has not only protected businesses from billions of losses but has also set a new standard for a management culture based on transparency and proactivity..
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