Risk Management

Risk is inherent in every business and should be assessed periodically.

A thorough risk management plan should reduce the chance of an adverse event occurring and, if it does occur, a risk management strategy should reduce its impact. Overall a complete risk management plan assists in protecting the wealth of your business.

In today’s business environment it is important to understand potential risks and manage them. An unaddressed risk could directly impact the day-to-day operations of a business, negatively affect revenue and increase operating expenses. Risk management is the process by which you methodically analyse potential risks attached to the business activities while pursuing strategic goals.

Business risks vary in size and impact. They may be direct or indirect. They may be substantial or minor. Such things as financial penalties for non-compliance, data loss due to inadequate IT management or the loss of a major client due to failures within their business structure may detrimentally impact your business.

A risk management strategy will determine if the business should

  • Accept the risk by simply taking the chance that the negative impact will be incurred
  • Avoid the risk by altering plans in order to prevent the problem from arising
  • Mitigate the risk by reducing its impact via intermediate steps
  • Transfer the risk by outsourcing the risk to a capable third party that can manage the outcome

As the business world evolves risk management plans should be periodically reviewed in order to avoid having the analysis become stale and not reflective of actual potential risks.

At Intelligent Concepts we can help you establish a risk management plan by analysing potential risks and the likely impact on the business. Once determined a risk management strategy can be implemented to enable periodical reviews.