Risk is an inherent part of every endeavor mankind seeks to undertake. Often times the higher the risk, the greater the reward. And while some risks are known, others are unknown and surprising. But guidelines and procedural outlines can mitigate risks by establishing better decision-making processes. This is called Risk Management.
Risk management is all about mitigating potential hazards, losses, and liabilities. But this has become increasingly difficult in an ever changing and often unpredictable world. There are myriad kinds of risks facing every type of project and organization. And yes, some people and organizations take certain risks purposefully. But other times, unexpected risks rise up and can result in human, property, and financial liability losses.
There are human risks :
- A machine worker on medication makes a mistake and accidentally damages property or even hurts himself or another employee.
- An employee intentionally creates loss through unethical or illegal actions such as theft, harassment, or workplace violence.
There are production risks:
- A product fails, possibly breaking and causing damage, injuries, or even death.
- Materials or processes of manufacturing fail, hindering the supply line.
- Changes in government regulations impose new taxes or trade laws.
There are intellectual risks:
- A company’s patent is violated through design theft.
- A company’s reputation is damaged through copyright infringement.
There are catastrophic risks:
- Disasters, natural or man-made, destroy property and injure or kill.
Many areas of risk management are new and emerging categories such as terrorism, climate change, and needs in the developing world. Others are the same risks facing age-old industries, such as agriculture, but that still can have a profound impact on the organization, employees, and consumers. On this site, you will find overviews of the most pressing issues facing the risk management industry.