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Risk Management

By Helen McMillan

How to identify where the risks in your business are right now and use them to make your business safer and more resilient in unprecedented times.

Helen McMillan

Helen McMillan

Executive Business Consultant
Part 2: Exploring Risk

Introduction

Recap

In Part 1, we learned about the fundamentals of risk:

  • Risk is uncertainty that matters. We are looking for things that might or might not happen. We are not looking for problems, issues, or things we don’t like. We’re not just looking at things right now. We need to look at future events or circumstances that might not happen but if they do they would affect us.

  • This includes bad and good risks – threats as well as opportunities. Risk should be seen as an enabler – it allows us to focus on what is important and allows us to do our business in a really safe way.

  • We need to separate risks from the things that cause them and their impact. Defining what the actual risk is ensures that we understand how it could impact us.

  • Thinking about the right controls is extremely important - for risks that are emerging, those that have crystallised, and those we need to think about moving forward.

  • The risks that you think are the ones you need to concentrate on are often not the areas of focus, and by properly analysing likelihood and impact, we can determine where efforts need to be.

  • It’s all about having a structured approach to planning our risk responses and documenting them in the right way.

  • Risks are uncertainties but not all uncertainties are risks.