If Risk Management is not helping you improve your business, you are doing something completely wrong!

Risks refer to the threats we are exposed to. Threats are a fundamental part of doing business, meaning that if we manage to eliminate all threats we have probably also eliminated our basis for doing good business. What is important is being aware of these threats.

Thus, risk management is a central part of your business and that’s why we need to know how to relate to:

1)   When the advantages of the business exceed the threats.

2)   What we can do to eliminate risks without losing business.

3)   What advantages we have from knowing our risks.

Risks should be handled as a central part of decision-making. No business case, budget, or strategy should be made without thinking about the benefits and risks related to them.

Identify risks

One way to identify the most obvious risks is to look through history and point out what has gone wrong until now. Consequently, registration, reviews, and follow-ups on all incidents are an essential part of having everything in good order.

Past incidents can, however, only show us the threats we are exposed to on a regular basis and may not reveal the rare threats, which might hit us even harder.

For each significant risk that we can actually affect, we should develop response and mitigation plans and as these plans are completed, they should result in security measures and controls. These should be documented in the appropriate procedures or system documentation.

It might seem a bit boring and bureaucratic at first, but it’s actually just a matter of protecting the core business and the things you are responsible for by using a simple structure.

The question you should be asking your self is:

Are you protecting the most valuable assets within your responsibility?