Prediction of Risk Minimization Using Ui Ux Approach in the Industry

The user interface (UI) is what a user may use to interact with while using a digital product or service. Examples: buttons, icons, menu bars, etc. 

The user experience (UX) is an overall experience of a user when they interact with the products or services.   

• UI design is all about how the product’s interface looks and UX design is a method of improving and enhancing the functionality of the user interaction. 
• UI design’s aim is to visually direct the user through the interface of a product to create a good experience. However, UX design is not about the visuals at all, but only about the overall experience of the user. 

What is Risk Minimization activity?

Risk minimization or risk management is important for any business across all industries. Risk management is the process of identifying, assessing, and controlling threats to an organization’s capital and earnings. These risks may arise from a variety of sources including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents, and natural disasters. 

A typical risk minimization activity involves the following steps: 

1. Identification: To identify risks that the business may possibly face.
2. Analysis: For each potential risk, it is essential to understand how it can happen. This step also involves documentation of its effect on the business. 
3. Evaluation: After identification and analysis, a business can decide if it is willing to take the risk or not. Some risks may remain unavoidable for the business to grow, and this step helps in recognizing them.
4. Mitigation: If a risk is not worth taking, i.e., it may have a huge negative impact on the business, the mitigation step allows to create a plan that can reduce the impact.
5. Monitoring: This step is to ensure that the business is always careful about the potential risks that may arise.

This process helps in examining not only the types of risks that a business may face but also analyses its future impact on the organization’s strategic goal(s).  

Principles

The International Organization of Standardization (ISO) identifies the following principles of risk management:

• Create value, i.e., resources expended to mitigate risk should be less than the consequence of inaction
• Be an integral part of organizational processes
• Be part of decision-making process
• Explicitly addresses uncertainty and assumptions
• Be a systematic and structured process
• Be based on the nest available information
• Be tailorable
• Take human factors into account
• Br transparent and inclusive
• Be dynamic, iterative, and responsive to change
• Be capable of continual improvement and enhancement
• Be continually or periodically re-assessed 

Role of UX in the organizational commitments to strengthen the performance

Why risk minimization is important?

Risk reduction or optimization involves reducing the severity of the loss or likelihood of the loss from occurring. Example: Sprinklers are designed to put out a fire to reduce the risk of loss by fire. This method may cause a greater loss by water damage and therefore may not be suitable. Halon fire suppression systems may mitigate that risk, but the cost may be prohibitive as a strategy. 

Risks can be positive or negative, optimizing risks means finding a balance between negative risk and benefit the operation or activity.  Risk minimization is applicable to make risks cost less while opportunities are well used to boost the growth of the business. 

Forrester Research senior analyst Alla Valente, a specialist in governance, risk and compliance said “We don’t manage risks so we can have no risks. We manage risks so we know which risks are worth taking, which ones will get us to our goal, and which ones have enough of a payout to even take them.” 

Risk minimization using UI/UX approach

To discuss impact of UI/UX approach on risk minimization, it is essential to understand that the designers’ main job is to create product or services that are desirable, feasible and viable. 

So, to design a service that works for the users and for the business, it is required to evaluate and manage how the external and internal environment works (or not) with what is being created. To create a good design, it is important to focus on the risks involves. 

In terms of a textbook definition: 

Risk management is the identification, evaluation, and prioritization of risks, followed by the coordinated and commercial application of resources to minimize, monitor, and control the probability or impact of unfortunate events. (Source: Wikipedia)

The service design involving UI/UX and risk management/minimization share common ground where it is highly essential to understand how a user might act in a given situation to be able to design a good service or product. Every human may have a different type of interaction for the given UI/UX and it is critical for the designer to understand the risks involved, to be able to create a better design while forecasting the challenges the user may face. 

A business with better UI/UX will be able to build and strengthen its trust among the users or customers. 

Factors (Risks) that may impact the design:

• Customer persona: The customer’s persona created through the search type
• Context: The customer’s environment and where they are physically or virtually located 
• Objectives: The customer’s goals and desires
• Motivation: What boosts the customer’s motivation in using the service or product
• Inhibitors: The customer’s fears or concerns that they will want to avoid while using the service or product.

Broadly these risks can be divided into 2 major types: 

1. Regulatory risk
2. Operational risk

With all the above discussed, it can be deduced that the UI/UX approach can help in risk minimization in the industry.