Managing Risk
Risks to your organisation or business can exist anywhere and it can be hard to predict when they will occur. Managing risk is an important part of business, and planning for risks before they occur is often the easiest way to do this.
Risk management is a systematic process of making a realistic evaluation of the true level of risks to your organisation or business. Before risks can be properly managed they need to be identified by asking the following questions
- What can go wrong?
- What can I do to prevent it?
- What do I do if it happens?
A good plan is to develop a risk register to document each potential problem, its level of seriousness, what is required to fix it and who will fix the problem.
Resourced from https://www.business.gov.au/
Resources
Definition of risk management
Risk management is the identification, assessment, and prioritisation of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimise, monitor, and control the probability and/or impact of unfortunate events or to maximise the realisation of opportunities. Risk management’s objective is to assure uncertainty does not deviate the endeavour from the business goals. https://en.wikipedia.org/wiki/risk_management
