Risk Management

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Things go wrong in every business. But the last thing any business wants is to be faced with a crisis or emergency which could have been prevented by some forward planning and risk management. As such organisations need to have strategies in place to identify, treat and protect against risk.

A risk can be defined as an uncertain event or set of events that, should it occur, will have an effect on the achievements of business objectives. It consists of a combination of the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives – where a threat is an uncertain event that could have a negative impact, and an opportunity is one which could have a positive or favourable impact on objectives.

Risk management is the process of identifying, assessing and controlling risks. At a basic level the person responsible for managing risk in your organisation should:

  • Design and implement a risk management framework for your business.
  • Consult and communicate with stakeholders.
  • Identify, analyse and evaluate risk.
  • Apply decision making criteria to risk treatment options.
  • Monitor and refine risk management practices .Contact us for more information.

Your organisation should have a risk management strategy and a business risk management plan.  As part of this plan you should undertake an IT risk assessment and a business risk assessment – both of which should be reviewed and updated on a regular basis.  At a more advance level the risk management process should be integrated into senior and executive management level and applied at an operational level. A link should be developed between the operational framework and the organisation’s strategic planning, aims and management. The interrelationship of operational areas within an organisation should also be identified.

There are several techniques used to identify risks such as:

  • Review Lessons: review previous activities to see what threats and opportunities affected them
  • Risk Checklists: in-house lists of risks that have been identified or occurred on previous activities
  • Risk Prompts Lists: publicly available lists that categorise risks by business sectors, areas and activities
  • Brainstorming: group thinking which is often more productive than individual thinking
  • Risk Breakdown Structure: a hierarchical breakdown of the activity to illustrate potential sources of risk

Every organisation, large or small, should dedicate resources and skills to managing their risk. At SelecTech Solutions we can provide a comprehensive risk management programme and risk management systems for your business. Contact us for more information.

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