Risk Management

by Peter Parkes

Risk Management

We deal with risk in our every day life, though usually in an unstructured manner. For example, if we think there is a probability of rain we may carry an umbrella. Similarly, most of us carry a spare tyre, have motor insurance and house insurance and set off early for important meetings – all examples of risk mitigation, in other words, ways of dealing with perceived risk.

Risk management entails envisaging risks (before they happen and become issues), assessing how likely they are to occur, and what action, if any, can or should be taken to prevent, circumvent, cover them or deal with them.

Your involvement in risk management may run from the routine but informal consideration of day-to-day risks occurring in your area of responsibility up to holding or taking part in a risk workshop concerned with a large project. Whatever your situation, it is essential in today’s highly changeable business world to have an understanding of the value and process of basic risk management.

Take calculated risks. That is quite different from being rash.

General George S Patton

 

Copyright © Peter Parkes