Risk Management

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Risk management is formally the culture, process and structures that are directed towards realising potential opportunities whilst managing adverse effects. What this involves in practice is to:
  • identify the risks (threats and opportunities)
  • decide what to do about them
  • do it
  • make sure you are doing it and that it is working.

    This can be regarded as a plan-do-review management cycle like any other - see chart. And since all management is aimed at improving the future there is no real distiction between management and risk management. Risk management is directed at making it more comprehensive and more visible. It is not rocket science; it is what managers have always done (or should have done).