Identifying What Risk Management Is
Risk management analysis has now been applied to almost all forms of disciplines—from
the personal to the professional, from the individual to the corporate. If you ask a writer
how he would define risk management, one probable answer would be the management
of risks involved in writing articles or books that may be categorized as plagiarized. To a
doctor, risk management would be to reduce the incidence of infection and relapse to a
patient. In business, risk management would be to identify potential events that may
adversely affect the long term existence of the company. You may have your own
definition of risk management if you were asked to define it. So putting a single
definition for risk management would almost be impossible.
Although the definition is totally different, the principles and processes involved in risk
management are surprisingly similar. All of them involve the identification of the
possible risk. Identification will always be the first factor when asked to define risk
management. And all of them will have a possible solution in order to resolve the risk
before it happens, as it happens and after it happens. Thus it gives the person, company
or institution an assurance that they will be able to cope with the project or activity they
are about to undertake.
But it has to be noted that while there are key concepts and methods for risk
management, it will not guarantee to totally solve or abolish the problem. Risks will
always be there and there is no fail-safe plan no matter how long or extensive your
contingencies are. But it will, however, assist you in making the right decisions and help
you to be prepared in the unfortunate event that it does happen.