What is Risk Management?
Risk management is the process of identifying, assessing, and controlling threats that have the potential to impact an organisation. These threats could stem from a wide variety of sources including strategic management errors, natural disasters, and other accidents, and can lead to threats to personnel safety, legal liabilities and financial uncertainty or loss if not mitigated effectively. Risk management planning lays out the processes and procedures to be put in place before a risk can cause a crisis and will help reduce any potential negative impacts on your organisation. Taking a risk and finding how to strategically manage it before it becomes a threat is the difference between success and disaster.
Holistic risk management approach
Risk management is the basis of any resilience program. To ensure that a holistic approach is taken when looking at risk management, there is a series of steps that should be followed. These steps are planning, identification, assessment, monitor and control and risk response development. As potential risks are not the same for all organisations, following this process will help your organisation to gain a thorough understanding of organisational risks. These risks can then be mitigated or eliminated, and a series of risk management plans can then be put in place to ensure any future potential risks that may arise are managed appropriately. When it comes to risk management plans, processes and frameworks, they are all related, yet focus on different aspects of risk management.
We recommend that organisations utilise the international standard “ISO 31000:2018 Risk Management – Guidelines”. This is imperative for regulators, lawmakers, boards and insurance companies, as it provides a robust methodology for the mitigation and management of risks.
Risks to a business can be separated into the following categories:
Our specialised team will assess your unique needs and tailor a risk management plan specific to your organisation.
Risks can be separated into three different categories, each category having its own specific way of being handled and managed. The three kinds of risks are preventable risks, strategy risks and external risks.
Preventable risks: Refers to any internal, controllable, or avoidable risks that can be eliminated. This may include a human error or any unethical, inappropriate, and illegal actions from employees or managers from within the organisation. To effectively manage and minimise preventable risks, it is important to establish solid goals and values within your organisation. Keeping your staff and management accountable for their actions by creating an environment that promotes your organisation’s fundamental purpose will aid in reducing preventable risks.
Strategy risks: The existence of these risks is an integral component of business progression. In order to expand and grow as a business, some risks are voluntarily accepted, as the potential gain of generating a return or a reward from a particular strategy outweighs the risk. Generally, a strategy with a high expectation for reward will involve the business taking on more risks. With the implementation of a risk-management system designed by Resilient Services, your business will have the appropriate tools to manage and assess risks to take full advantage of higher-risk, higher-reward ventures with confidence.
External risks: Risks that are prevalent and possible, but are largely outside of an organisation’s control, are referred to as external risks. Prevention is not suitable when dealing with these kinds of risks, as they cannot be controlled or predicted by the business. In these cases, risk identification and mitigation procedures are used to manage and reduce negative outcomes.
Successful Risk Management
Resilient Services understands that risk management, much like emergency management, is an ongoing process. Successful risk management is not linear and is rather a cycle that will only be effective if it continues to circulate in the background of all businesses. Here at Resilient Services, we recognise problems before they become emergencies and have the best practices to manage those potentially harmful risks.
Industries that are offered risk management systems
Resilient Services provides a range of risk management systems to a variety of industries. These industries include, but are not limited to:
Enquire for a risk management system, plan, or procedure.
Our team of experienced risk analysts and emergency managers can help your organisation combat risks before they become a problem. Fill out an enquiry form or call us on 0439 005 271 to find out more and to see how we can help your business prepare for the unknown.
Resilient Services – Stronger, Smarter, More Secure
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