BSC Designer – Balanced Scorecard Software

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Risk assessment can be used in almost every industrial setup in the world.

Case Study 1

Problem Statement: An insurance agent needs to conduct risk assessment on a wind mill farm in Texas to check its feasibility as a prospective candidate for insurance. The objective here is to understand the most relevant category of risks that are of the highest concern while financing such an industrial insurance project. The risk assessment methodology here involves analyzing the various threats that can arise due to various technological, engineering, contractual and performance issues.

The wind mill, in question, will have 64 turbines, each of which will have the capacity of 1500W; thus, providing an overall output of around 100MW, with an energy conversion ratio of 26%. The project comes with a strong backing of the state government, as the wind farm will provide clean energy to the nearby cities.

The insurance cover demanded by the client requires the insurance firm to fully refund the original expenditure in the case of any lasting damage, productivity loss and technological short coming. Having such a client will bolster the economics of the insurance firm, but the question remains whether such strong insurance terms would one day work against the company. This case study will cover all the intricacies covered by an insurance agent before choosing his clients.

Solution: The risk assessment analysis of such a high profile client is started from the day the first draft of the wind mill farm is produced. The charm of having such clients is the fact that they work as a constant source of income and the contract value decreases with each year unless newer ones are made. The critical resources of such projects vary as the project matures. As in the project development phase, the critical resources are the funding source, government clearances and construction workers, among others. Various techniques and simulation tools are used for this risk assessment process.

Financial risk management (FRM) instruments are used to assess the risks that will affect the construction and operating phase of the wind project. These instruments will be studied based on mathematical simulations carried out on the computers. Various technical surveys, like wind speed measurements, soil density and work force availability, are also required to make sure that the wind mill will actually be productive after its completion.

Risk assessment is also done on the testing phase of the project. It can very well happen that the project does not pass the approval required by various standardizing companies. This way, both the project and the insurance company will incur losses.

Based on the above analysis, a risk analysis chart is created, which looks like this:

The above table shows only a few of the possible risks.

Results: Insurance is widely considered to be a business of risk. It involves identifying and understanding the various aspects of risks involved with insuring any particular client. In this case study, the stake holders of the wind mill farm could very well be planning to con the insurance company.

The decision to provide the financial cover is based on the data collected from the risk assessment chart. Using it, the expected loss from the project is calculated through the formula:

• Expected Loss = Financial Loss * Probability of Loss

If the value is within the budget of the insurance firm, the project is insured.

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Risk Assessment is a management process for logical and systematic decision making. All of its techniques follow a step by step format of processing.

Risk assessment is a management process. It requires implementation of various steps that aid the management in informed decision making. It is a logical and systematic approach for management functioning. There are various models for risk assessment. Each model is designed specifically to serve a particular service sector. However, the following steps have been found to be present in across all models.

Step 1: Identify the Critical Resources and Threats

This step involves identifying the critical resources of the organization conducting the risk assessment. These could be the vital processes or the dependencies, which must be met for the organization to remain productive. For example, a meat processing firm depends heavily on the input of live stock. If their supply is hindered by spread of disease or malnutrition, the whole system will fail. The elements that cause such disturbances in progress are known as the threats, which can vary from business to business. For a software firm, for instance, a virus in the central server could cause data loss, while the same virus is the reason why antivirus software firms work.

Step 2: Deciding What Such Threats Can Lead to and to What Extent

Once the threats are detected, the job of determining the full extent of damage they can cause starts. For example, during the feasibility study of a new software product, the IT managers conduct a risk analysis assessment to check how much loss will occur if the opposing firm also release a similar product.

Step 3: Evaluate the Risks and Decide on Precautions

This step requires fully understanding the overall damage that a particular threat can cause. Once identified, proper precautions must be put in place, if the management wishes to go ahead with the process. Let us go back to the above mentioned IT case. The management can put proper privacy measures in place in order to ensure that their product remains under wraps.

Step 4: Make Records of Changes and Implement Them

This is the step where the actual modifications are made to counteract the hindrance caused by the activation of any threat. In the example of the meat processing firm, the companies can start taking their input from the suppliers present nearby, this way transportation hazard would be limited.

Step 5: Keep Reviewing and Always Be Ready

This step needs to be active all the time. Newer threats can be generated from the precautions made for the previous ones. They can also spawn from parameters like modifications made in the firm or evolution in the overall market of the product.

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There are several techniques used by different types of businesses for risk assessment. Here we review three popular methods of assessing risk that can be applied across a wide range of business types.

Risk Assessment Matrix (RAM)

RAM is an extension of the original risk assessment process. With the use of this process, a company is able to identify its most critical resources (both in terms of processes and functions), identify the threats that can affect these critical resources, identify the causes pertaining to these threats and, eventually, tackle the threats and ensure smooth functioning of the critical resources.

For the smooth functioning of any organization, it is best to keep all critical resources independent of each other. This way, even if one of them is affected, the rest can perform in an unhindered manner. The RAM protocol is applied on the avenues from where the company gets it raw inputs, such as the suppliers, customers and the employee recruitment wing. Even the mundane necessities like electrical supply, water and sanitation, telecommunication, gas and sewage system are considered. This is done because disruption of any one of the above necessities will severely affect the normal work flow.

The whole RAM process can be summarized under the following steps:

1. Identifying the various business functions and processes
2. Identifying the most critical of all the resources
3. Determining how much time will be spent to recover the critical resources, if they are stopped
4. Identifying the threats that can cause harm to the critical resources
5. Determining the vulnerability to these threats
6. Planning and establishing the necessary steps to counter the threats

Risk Assessment Survey and Mapping

This risk assessment technique involves identifying, evaluating and, subsequently, ranking the various risks present in any business work cycle. Risks are an integral part of all business activities. The first part of this technique is used to survey the business processes and discover the risks that can hinder these processes. The mapping part then creates a plan, prioritizing the various risks, based on their criticality.

For the survey, the Arthur Andersen Business Risk Model is used. This model clearly describes the various risks that can affect the business. Once identified, these risks are ranked on a scale of 10, where 1 is the least risky and 10 is the riskiest factor. The important points to keep in mind are:

1. Each ranking number should be used only once
2. Once the ranking has been done based on significance, another ranking should be done based on likelihood of occurrence, where 1 stands for the least probability of occurrence and 5 for most probable risk
3. Always make a note of risks that are left out but still have a minute chance of occurrence

The biggest advantage of this format is that the risks are handled based on their priority.

Quantitative Risk Assessment

This risk assessment technique works through the calculation of single loss expectancy (SLE) of critical assets of any organization. This SLE denotes the overall depreciation in the values of the assets in the event of a single security incident. The next step involves calculating the Annualized Rate of Occurrence (ARO) of the hazard in relation to the critical resource. The ARO is a simple estimation of the number of times a hazard can make use of the system’s vulnerability. The third parameter of this technique is Annualized Loss Expectancy (ALE). This is a measure of the overall loss expected through a single hazard in a given time frame. It is calculated by multiplying the SLE with the ARO. This technique is best suited from a financial perspective, as it can help justify the expenditures made to protect the critical resources.

This technique has been successfully automated in the form of quantitative risk assessment software. However, this method has also faced severe criticism from expert risk advisors because it does not account for risks that can be caused by unquantifiable and inaccessible information.

Alternatives to Risk Assessment: A Comparison

Since its inception, risk assessment, as a business technique, has faced very little competition. In fact Dr. Kaplan, the innovator of the Balanced Scorecard, in an interview with SearchCIO.com, said in reference to the companies that failed to utilize risk assessment, “[Risk Assessment] turned out to be an extremely important function that was not done well by many of the [financial services] companies we talked about earlier. Risk management was siloed and considered more of a compliance issue and not a strategic function. Now we see that identification, mitigation and management of risk has to be on an equal level with the strategic process.”

The only risk assessment alternative is predictive functioning. The loophole can be seen in the name itself. Predictive functioning is based on market analysis. A project or function is carried out if the market shows positive trends associated with it. On the other hand, with risk assessment, it is possible to figure out, in advance, whether investing in the new avenue is financially viable or not.

Risk Assessment: A Solution to Every Problem

Risk assessment is not just a business tool. It has been proven to be effective in health, environment, banking, software, and many more fields. Consider a situation where an insurance agent is given an application to judge whether the applicant is fit for life coverage or not. The applicant is a well built man in his mid 20s and in the prime of his life. The only problem is his fixation with high risk sports. In cases like these, the use of quantitative risk assessment software is advised. Some of its alternatives come packed with an application to actually map the risk versus the feasibility graph customized for insurance workers.

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Balanced scorecard analysis can only provide a manager with ideas that can lead to the company’s success. However, it is by conducting risk assessment on those ideas, can the manager know whether they are financially feasible or not.

The concept of a balanced scorecard was first proposed by Dr. Robert S. Kaplan, of Harvard Business School, and his colleague David Norton. Since its inception in 1992, it has found great success in the working of all organized business environments. It is basically a strategic performance management tool. It is uses proven design methodologies and automation programs. The end report is useful for managers who can use it keep a track of all the activities of their employees, as well as monitor the results produced by those activities. It is the most actively used performance management tool in almost the entire English speaking world.

The only tool that this strategic planning solution lacks is the risk assessment feature. This even Dr. Kaplan accepted at SearchCIO.com, saying, “If I had to say there was one thing missing that has been revealed in the last few years, it’s that there’s nothing about risk assessment and risk management. My current thinking on that is that I think companies need a parallel scorecard to their strategy scorecard — a risk scorecard.” However, what the tool lacks in design can be incorporated by practice.

Designing a Balanced Scorecard for Strategic Planning

The design of the balanced scorecard has evolved a lot since its first model. The earlier architecture comprised of four sections – financial, customer, internal business processes and learning & growth. The newer model, on the other hand, involves listing various financial and non-financial parameters that tend to affect a company’s growth. Such parameters are then reviewed to check whether they meet the desired standards or not. Based on the result, necessary steps are taken. All this reflects the original vision of the creators, which was to:

• Translate vision into operational goals.
• Describe the vision so that it can be carried out by employees.
• Help in business planning.
• Learn through regular feedback.

Using the Balanced Scorecard for Risk Assessment

Risk assessment has evolved into a working force in almost every business atmosphere. This, however, was not an integral part of the balanced scorecard design.

There are three outputs of a balanced scorecard analysis report:

1. Strategy: The game plan for achieving the vision.
2. Target: The desired level of performance or results.
3. Vision: The desired vision of future success.

Risk assessment analysis can be applied to all the three finer points to ensure investment in the right direction.

The strategic plan that has been created by conducting scorecard analysis can still put the company in a financial dilemma. This is what happened in the case of a reputed firm in Ohio. One of its managers, after conducting balanced scorecard analysis, found that his team could be more productive if they started working on a different end product; which was in high public demand. The proposed project was forwarded to the top brass, who ordered for a risk assessment of the plan. The report showed a very high quotient of risk as this paradigm shift could have led to loss of credibility and would also have taken the company into a highly competitive market, in which success was not guaranteed.

This case only goes to show that strategic planning is incomplete without proper risk assessment.

admin KRI

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Risk assessment evaluates the quantitative and qualitative value of the risk involved in any business endeavor, when compared to the occurrence and frequency actual threats.

Have you ever wondered what a random open drawer or a naked pin on the office floor can do to your annual budget? It could lead to hefty medical bills or, in the worst case, even a messy lawsuit. This is why several companies carry out regular health risk assessment programs to accident proof their working space. However, such losses are only a minute fraction of the losses that will occur if the top brass invests in a doomed client or project. To address this issue various companies offer risk assessment facilities.

What is Risk Assessment?

Risk assessment is a part of a much bigger risk management process. Its job is to assess the quantitative and qualitative value of the risk involved in any business endeavor, when compared to the occurrence and frequency actual threats. Such threats are also known as business health hazards, since they often result in financial losses. This process is generally conducted in the following 5 areas:

• Marketing
• Business
• Product
• Finance
• Actual execution

For example, before releasing any new product, a company is advised to carry out a risk analysis process to assess the risk involved with each of the commercialization steps.

What Problems Does Risk Assessment Address and Solve?

As a manager, have you ever been in a situation where you had the blueprint for a new product or technology, of whose success you were 100% sure? Then, you would know the jitters such a situation creates. This stress is probably due to the high level of risk associated with such financial decisions. A lot of questions keep on popping into one’s head, such as: Will this product sell? or What will happen to my career if this product sinks? Risk assessment is the answer to all such questions.

The example stated above showcases only one of the various issues that risk assessment can address and solve. In fact in information technology based projects, it is integrated into their work structure by having a special risk analysis phase after each stage of product development. This ensures that the project is proceeding smoothly, without turning into a complete loss. Whenever the risk quotient goes out of control, a review of the situation is taken and process continues after all issues have been addressed.

Besides the business hemisphere, this process can also be applied to the world of healthcare or even to auditing processes. According to Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement, “the auditor should perform risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control.” In auditing, risk assessment works as a process by which a score is assigned to potential audit areas based upon the total risk factor associated with the auditee’s functioning towards the auditor.

Some health insurance companies use risk assessment as a tool to distinguish between risky and safe clients. For example, a client prone to drunken driving will not get cheap health coverage, since chances of an accident will be high for him, as compared to a client who rarely drinks.

Who are Stake Holders in Risk Assessment?

The common stakeholder situation with risk assessment can be as described below. It involves the role of three stakeholders. One of them strongly backs carrying out the assessment; the other is not sure about it while the third is against it. It is when the first one supersedes his colleagues, that a risk analysis program is sanctioned.

Let us take an example of recent proceedings in a reputed marketing firm. In 1999, the HR Department of this firm released a statement that any fresh appointments in the firm, for the fiscal year 1999-2000, will put a severe strain on their annual budget. Now this firm had a reputation of bringing in new talents each year through various on-campus drives. A healthy debate ensued between the HR manager and the CEO, resulting in the appointment of a risk assessment team. The end report was found to back the HR’s statements. Eventually, the placement drives were carried out, but this time around, the vacancies were limited and the qualification criteria were made more stringent.

Who Uses Risk Assessment?

Risk assessment analysis is commonly used by software engineers, insurance dealers, corporate or small business stakeholders and health inspectors. These reports allow the user to analyze whether moving ahead with a project is feasible or not. Other areas of usage also exist. For example, even an ordinary salesman can carry out a personalized market risk assessment analysis to figure out whether investing in a particular sales product would be feasible for him financially or not. Such risk assessment would probably involve checking the public demand for the product and its expected market value in the near future.

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The objective of Risk Assessment Guide is to create awareness amongst the readers regarding the potential benefits of using risk assessment as an active tool in any company’s work structure.

• Buy full version of Risk Assessment Guide for $199 | Product License

Inside:

• 89 Key Risk Indicators (delivered as BSC Designer and Excel files)
• 23 page Risk Assessment Guide (Adobe PDF file)
• Risk Assessment Presentation (15 PowerPoint slides, .pptx file) — check examples below.
  

• Check free version of Risk Assessment Guide

It is actively used in both private and public sector organizations across a wide range of services and activities.

For instance, consider a situation where a doctor is presented with two potential candidates for heart transplant. One of them has a record of alcohol abuse, while the other is a healthy primary school teacher.

By conducting a simple risk assessment methodology on the two cases, the doctor will realize that it would be advisable to treat the second patient, since he will make better use of his new life and is more likely to survive the process.

Inside

• 89 Key Risk Indicators (delivered as BSC Designer and Excel files)

• 23 page Risk Assessment Guide (the description of the content is below)

The objective of Risk Assessment Guide is to create awareness amongst the readers regarding the potential benefits of using risk assessment as an active tool in any company’s work structure.

• 15 slide of Risk Assessment presentation

Risk Assessment Presentation Template. 15 PowerPoint slides (.pptx file)

Part 1. Introduction to Risk Assessment

Have you ever been in a situation where you were made to wonder: Will this product sell and what will happen to my career if this product sinks? Then you know the fear such situations can elicit. However, there is a way to counteract such fears and it is known as risk assessment.

It is the job of the stake holders to order the implementation of this process, based on the requirements of their managers. It is commonly used by software engineers, insurance dealers, corporate or small business stakeholders and health inspectors.

Part 2. Risk Assessment and the Balanced Scorecard

The concept of a balanced scorecard was first proposed by Dr. Kaplan in 1992, and even he accepts that the only thing the tool lacks is a risk assessment function. There are three outputs of a balanced scorecard analysis report: Strategy, Target and Vision. Risk assessment analysis can be applied to all the three finer points to ensure investment in the right direction.

Part 3. Alternatives to Risk Assessment

There are three primary variants of risk assessment methodology:

• Risk Assessment Matrix
• Risk Assessment Survey and Mapping
• Quantitative Risk Assessment

The last variant can be used to design automated tools for conducting risk assessment.

Since its inception, risk assessment as a business technique has faced very little competition. The only alternative to risk assessment is predictive functioning. It is not just a business tool and has been proven to be effective in health, environment, banking, software, and many more fields.

Part 4. Step-by-Step Guide to Risk Assessment

The business risk assessment process is conducted via the following steps:

1. Identifying the critical resources and threats
2. Deciding what such threats can lead to and to what extent
3. Evaluating the risks and decide on precautions
4. Making records of changes and implementing them
5. Reviewing regularly to always be ready for any eventuality

Part 5. Controlling and Minimizing Risks

Risk assessment can be used in almost every industrial setup in the world. Risk assessment affords different advantages for differing organizational setups. Case studies of a textile company planning to outsource to Pakistan, a banking firm creating a disaster recovery plan, an IT company involved in software development, an international merger of two leading shoe brands and an insurance agent conducting research on insurance for a wind farm help understand how risk can be predicted and therefore minimized.

Part 6. Conclusion

Risk assessment is a systematic and logical process focused on identifying, analyzing, treating and monitoring the various risks that can hinder the smooth functioning of any business institution. By integrating it into the curriculum of an organization’s work stream, managers can ensure informed and productive decision making. Risk assessment can even be run using the balanced scorecard to help in strategic planning.

Part 7. Risk Assessment FAQs

Some of the frequently asked questions about risk assessment include:

• Does my organization need risk assessment?
• What do I stand to gain from risk assessment?
• What options do I have for conducting risk assessment?
• Who is responsible for risk assessment in a company?

Part 8. Risk Assessment Checklist

A checklist should always be created before starting risk assessment to ensure that all aspects where threat is likely to occur have been covered.

admin KRI

Risk Diagram in BSC Designer PRO

The Risk Chart is designed specifically for risk indicators.  It shows the impact and the probability of the risk.  And again, the colors in the background match the color scheme you chose for your stop lights.

• Charts in BSC Designer – overview video

The latest version of BSC Designer PRO supports risk indicators. KRI (Key Risk Indicators) are used during the process of risk estimation.

BSC Designer allows to:

• Add risk indicators to the scorecard (in Standard and PRO editions)
• Generate key risk indicators report (in Standard and PRO editions)
• Display the risk diagram for indicators (in PRO edition only)

• This chart is available in HTML report;
• Learn also: basic ideas about charts in BSC Designer;
• Learn more about Risk Indicators in BSC Designer manual.

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The KRIs can be applied in numerous industry verticals, and when designed appropriately and applied reasonably, these indicators can prove to be fruitful in preventing adverse situations in business and facilitate apposite steps to manage it. Some of areas wherein the KRIs can be analytically applied are enumerated below for reference.

Operations

Activities involved in carrying out business processes for creating value for the stakeholders and customers fall under the operations department of an organization. KRIs help the organizations to identify the key risks involved in operational processes of the business and facilitate taking up appropriate actions in order to minimize those risks. Dealing with operational risks is imperative for businesses in order to minimize losses, efficiently allocate the use of capital resources and to provide value to the stakeholders. Furthermore, the organizations need to comply with regulatory requirements like Basel II, TCF, and AML etc. The risks involved in operations include frictions in the internal processes, external events, employees, systems etc.

Internal process risks may involve issues like hierarchy system, organizational structure etc.

• External events may include risks like non availability of finances and loans from the market, issues with suppliers of raw material etc.
• Risks with respect to employees may include issues like employee turnover rate, overtime hours, degree of dependence on temporary staff etc.
• Risks with respect to systems may include issues like data protection, user application problems, physical hardware problems etc.
• Managing such operational risks resolves a great chunk of the overall problems faced by the business organizations and enhance business performance in total.

Banking

Banks are financial institutional dealing with huge amounts of money and capital. The risk they face is not only financial but non- financial as well. This makes the use of KRI all the more inevitable for them. Some of the risk they face are:

• Credit risk: This occurs when the borrowers are not able to meet the pre- specified obligations.
• Market risk: This involves the risk of losses due to market volatility
• Operational Risk: These involve the risks faced by the banks in the daily course of their business activities. These risks could be human, financial, procedural etc.
• Regulatory Risk:  Banks are supervised by a number of regulatory bodies like RBI, SEBI etc. And in order to run their business smoothly, banks have to abide by the regulatory norms of these regulators.
• Environmental Risk: This is the era of technological up-gradation, liberalization and globalization. Although these factors have helped businesses to grow but at the same time they have exposed the business houses to environmental threats e.g. Recycling of electronic goods and banks are no exception.

The Key Risk Indicators help the banking institutions in overcoming and minimizing   such risks.

Finance

Finance is a very broad term which includes banks, microfinance institutions, stock exchanges, credit unions, insurers and moneylenders. In today’s competitive environment the degree of risks they face has increased tremendously and hence the need of KRI has become all the more apparent.

The risks faced by this vertical are:

• Credit Risk: These are risks which arise due to default on the part of the second party.
• Market Risk: These risks arise due to fluctuations in the market.
• Liquidity Risk: Such risks arise due to the chance of failure of meeting the commitments made by the financial institutions because of lack of liquid assets.
• Operational Risk: These risks relate to daily activities undertaken to carry out the business.
• Country risk: These risks are country specific as every country has its own rules and regulations and a unique environment of its own.
• Legal Risk: Financial institutions have to work within the legal framework that has been set for them by various regulatory authorities. Not abiding by these norms can create legal problems for organizations.
• Reputation Risk: Each organization needs to work on its goodwill and has to maintain it in order to thrive. Without a good reputation organizations cannot survive for long.

Human Resource (HR)

Human resources are an integral part of any organization and hence HR issues also require the aid of KRIs to minimize risks. Risk is involved in each step of HR management. They are the following:

• Analyzing the job requirements and giving descriptions for the same: If the job requirements are not understood clearly, the very purpose of hiring fails.
• Hiring: The risk involved in this step is not to hire the right person for the right position.
• Training: If the employees are not trained well they cannot perform the job correctly and efficiently.
• Employer and employee relations: If there is friction between employees and employer, the work would be affected adversely.
• Performance Appraisal: It needs to be carried out correctly and regularly. It helps in recognizing the efficient employees and to found out the areas of weakness of the inefficient ones. It is great tool for motivating employees.
• Compensation: Employees need to be paid adequately in accordance with their work and performance. Otherwise de-motivation and low morale creeps in.
• Discipline: If the employees are not aware of the rules and regulations of the company, then they would not know what is expected out of them. This would lead to confusion and indiscipline in the organization which would affect the quality of work unfavorably.

Logistics

KRI also helps in minimizing the losses in logistics. The various risks associated with logistics are as follows:

• Inventory: These include risks like shortage and unavailability of inventory required. This could lead to further problems in production and manufacturing.
• Carrier: There is a risk of delays on the part of carriers, increasing the length of the time period involved.
• Cost: The cost of logistics keeps on changing with the market conditions. Hence it is necessary to keep a check on the market condition to assess the right cost from time to time.
• Theft: There is a risk or cargo and goods being stolen. It needs a high level on security to be maintained.
• Congestion: It involves the problem of heavy traffic which makes the whole process very slow. This again increases the length of the time period involved.
• Delays: Delays in the supply and procurement of goods can also create big problem for the business houses. E.g. It can affect the whole manufacturing process adversely.
• Financial problems: Logistics department can face shortage of capital and money.
• Fines: In case of non- compliance with the pre-stated norms and conditions the organizations can face fines.

Business Process Outsourcing (BPO)

The number of BPOs in India has grown immensely over the past few years. It is one the fastest growing in industries in the Indian cities. They have generated large employment opportunities for youth of the country.  But they also face various risks in their business process which needs to be taken care of. KRI has been helpful to the BPO sector as well in minimizing their risks and therefore losses. Some of the areas of risk management are:

• Knowledge of the outsourced process: The BPOs must understand the process and the expectations of the clients clearly. Lack of understanding can lead to the loss of the process by the BPO to some other competitor.
• Analyze the process: The process needs to be analyzed carefully and the complexities need to be simplified. Only then it can be carried out efficiently.
• Cost: The cost incurred should be minimized in order to make profits and pay employees well. Without this the very purpose of carrying out any business fails.
• Appropriate technology: The BPOs need to use the best technologies to carry out the process successfully. Only then they can stay ahead in this competitive industry.

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