No matter what your department or job function is, you need to be well organised and be ready to identify risks and take corrective action to rectify the situation before it becomes a problem, an emergency, or crisis. Risk is the chance or probability of loss, damage or injury resulting from an nforeseen event. Risks can be eradicated or minimized through risk management. Risk Management is the process of identifying, analysing and taking precautionary measures to avoid adverse effect to the business.
Organizations must have solid risk management best practices in place in order to complete tasks within specified time frames, budgets, and quality requirements. Proactive risk management allows the organization to optimize all available resources by implementing proven tools to plan for both threats and opportunities.
Risk can be internal or external by nature. Internal risks are those that controllable by or within the business. External risks, on the other hand, can be caused by outside factors that are not directly controlled by an organization. Identifying these two types of risks will greatly impact in planning and formulating the right strategies for the survival and growth of the business.
By identifying the risks involved and the level of control that one has on it, you can assess and prioritize the actions to take. Effective risk management can maximize profits or minimize costs. For risks that are beyond the control of the organization, preparation is essential to ensure that your employees can respond to unforeseen events or situations.
Involvement of all stakeholders is a must during the planning and preparation of a project in order to address all possible risks. Constant evaluation and training of the employees especially those who are directly affected by risks will ensure the success of the project / business.
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References: Rey de Luna, Tara Duggan (Demand Media) and Shingai Mutetwa