Do we manage risk effectively?

Everyone knows that it is important to manage risk. Everyone knows that, don’t they? From feedback in industry, that obvious truth is not clear to everyone. The very concept of risk is at best poorly understood.
Risk is simply the threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through pre-emptive action. So obviously, risk is managed to prevent loss, injury and other negative consequences of a threat to the organisation.
The concept of loss and injury is generally understood to a greater or lesser degree. It is around “other negative occurrences” that a gap exists. These occurrences include financial loss, reputation damage and even closure of the organisation or business.
If an organisation is only managing one or two sources of risk, it is not managing its risk effectively. Risk management covers every aspect of an organisations activities.
Are you managing your risk effectively? Take a moment to consider the answer.

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