
May 22, 2020
The Australian Standard for Risk Management AS/NZS 4360:2004 defines risk management as: “the culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects”.
Risk management is not just about completing an (often suggested) risk management plans, then forgetting about it by putting it in your bottom drawer. Ongoing risk management is an important activity for all organizations – government and private. Organizations that effectively manage project risk achieve their objectives and desired outcomes. Well, it minimizes the damage caused by negative results and identifies opportunities to improve project results.
No matter what the size, every project will be put at risk at some point. Risks can be direct, physical problems such as illness, flood or fire damage, theft or vandalism. But the risk can also be less clear and obvious such as poor decision making, poor recruitment process or investment in inappropriate technology.
Risk treatment plans for organizations
Business risk is related to exposure to certain events that will negatively impact the company’s strategies and objectives. Occupational risk, therefore, occurs due to two factors: the probability of the event as well as the severity of the outcome (Bowden, Lane and Martin, 2001). There are several risks that are more specific to my organization, and are shown below:
- Strategic risks
- Financial risks
- Operational risks
- Technical risks
- Market risks
Related Items: Risk Assessment ProcessesRisk Treatment Plans