Considering, anticipating and managing risk are all part of running a business. Risk, at its most basic level, is just the possibility that something might go wrong and have a negative effect. Some risks are easier to plan for than others and there will always be risks that have more serious consequences than others.
A risk management assessment can be used in helping your business to understand what your risks are and how you can effectively plan for them.
The first thing to do is take a look at your organization
The only way to plan for risk is to know what risks you may be facing. The best way to do this is to take a deep look at your business. This involves looking at how things are done now, what policies are in place and whether the business has previously experienced any loss as a result of unmanaged risk.
Move on to making a plan
Once you know what (and where) the risks are in your organization, you can then start to put together a plan on how to tackle this. This plan will involve taking the identified risks and setting a strategy for managing them. It may involve changing current policies and procedures and should be thought of as an ongoing project. It’s important to review regularly how things are working and to adapt the plan where necessary. For example, if a new risk is identified at a later date, this should be incorporated into the improvement strategy.
A risk management assessment can help your business to improve the safety of its operations, help you strategize for the future and make it a better place for everyone to work.