All of us encounter risks in everything we do – driving a car to work or even shopping in the supermarket. Most of us try to reduce the likelihood of risk affecting our everyday activities.
What is a risk?
A risk is the chance of something happening as a result of a hazard or threat which will impact on your business activity or planned event.
Risk arises out of uncertainty. It is measured in terms of the likelihood of it happening and the consequences if it does happen. To mitigate against risk companies must be able to demonstrate that they have done everything that is “Reasonably Practicable”, which means they must have taken the time, trouble and dedicated the necessary finances to control the risk.
What is risk management?
Risk management is the process which is used to avoid, reduce or control risks. There should be a balance between the cost of managing risk and the benefits you expect from taking that risk. When you set out on a car journey, you are subconsciously going through a process to minimise the risks you may encounter. For example, you check the car’s fuel level to ensure you avoid the risk of running out of petrol before you reach your destination.
This is risk management
An organisation’s ability to identify, understand and effectively manage risk is a proactive approach which creates opportunity and
value. In today’s business environment, the stakes are high and losses can be catastrophic. Shareholders and regulators are demanding that senior executives and board members have control and an understanding of risks affecting their business operations including strategic, operational, reporting and compliance.
ZeroRisk works with clients at all levels of the organisation to anticipate, understand and manage their strategic, operational, reporting and compliance risks. Using proven methodologies, enabling frameworks and experienced risk management professionals, ZeroRisk helps to manage your business risks and maximise opportunities.
What level of risk needs intervention?
The level of risk needing intervention depends on your organisation’s policies, goals, objectives, the interests of stakeholders and legal requirements.
- Financial losses (due to safety mismanagement) may include:
- Incidents costing the company $1,000 or more
- Major injuries resulting in hospitalisation
- Bad publicity
- Legal action
- Frequent small financial losses
- Frequent minor injuries
- Near misses / safety incidents
- The cost of an investigation
ZeroRisk advisers can assist you with creating a robust risk management framework.