Risk Management

What is risk management?

Risk management is a process used to avoid, reduce or control risks. Some risks can be insured against, others can not. This fact sheet is developed to help organisations deal with their insurable risks but can be applied to all risks.

Ignoring the risks which apply to your business activities or the events you have planned could impact on the following:

• The health and safety of employees, customers, volunteers and participants
• Your reputation, credibility and status
• Public and customer confidence in your organisation
• Your financial position
• Plant, equipment and the environment.

A systematic approach to managing risk is now regarded as good management
practice.

There are six steps to risk management:

1. Establish the Context
2. Identify the Risks
3. Analyse the Risk
4. Evaluate the Risk
5. Manage the Risk
6. Review