Risk Management
Risk is about uncertainty. If you identify that uncertainty, then you can work to reduce and manage the risks that are inherent to the industry, and in particular, your business. Applying a systematic risk management process to your entire enterprise may enable you to have a more effective business which in turn will create a more positive experience for you, your employees and your clients.
Identify the Risk; Identify risks that might affect your business.
Analyze the Risk; Analyze the consequence of each risk and its potential impact on your business.
Evaluate or Rank the Risk; Rank the risk by determining the likelihood of it occurring. Then make decisions about whether the risk is acceptable, or whether it is serious enough to warrant treatment.
Treat the Risk; Set a plan to treat or modify these risks to achieve acceptable risk levels.
Monitor and Review the Risk; Continuously screen and review your businesses risks. This ensures your business to be out in front of any unplanned events.
The risk management process also helps to resolve problems when they occur, because those problems have been envisioned, and plans to treat them have already been developed. The end result is that you minimize the impacts of risks and you may maximize your chance to capture the opportunities that naturally present themselves.
Informational purposes only.