The business environment is constantly changing every day — unpredictable, volatile, and more complex, so effective risk management is increasingly important to the success of any business.
Risk is any uncertainty about a future event that threatens your organization’s ability to reach its objectives. Risk management is a discipline for dealing with the potential risk. It provides strategies, techniques, and an approach to recognizing and confronting any threat your business faces.
While business has historically viewed risk as a necessary evil that should be minimized or mitigated whenever possible, increased regulatory requirements have forced businesses to expend significant resources to address risk, and management has begun to scrutinize whether the right controls are in place.
Risk management may be as uncomplicated as asking and answering three basic questions:
- What can go wrong?
- What will we do (both to prevent the harm from occurring and in the aftermath of an “incident”)?
- If something happens, how will we pay for it?
© Copyright 2018. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.
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