risk management

A risk is the chance of something happening as a result of a hazard or threat which will impact on your business activity or planned event. Risk arises out of uncertainty. It is measured in terms of the likelihood of it happening and the consequences if it does happen.

Risk management is the process which is used to avoid, reduce or control risks. There should be a balance between the cost of managing risk and the benefits you expect from taking that risk.

Ignoring the risks which apply to business activities or the events you have planned could impact on the following:

• health and safety of employees

• customers

• volunteers and participants

• your reputation,

• credibility and status

• public and customer confidence in your organisation

• financial position

• plant, equipment

• environment.

A systematic approach to managing risk is now regarded as good management practice.