MANAGING RISKS

Risks do exist in every single matter in our life, cannot be avoided and must facing its, otherwise you will be stuck in your life.

How to manage risks

There are four ways of dealing with, or managing, each risk that you have identified. You can:

• Accept it because you may decide to accept a risk because the cost of eliminating it completely is too high or the return you might gain is very high versus risk.
• Transfer it. You might decide to transfer the risk to other parties, which is typically done with insurance. 
• Reduce it. Risk can be reduce by introducing new safety measures or new working system 
• Eliminate it.  Risk can be completely eliminated by changing the method or way of doing things.

When you have evaluated and agreed on the actions and procedures to reduce the risk, these measures need to be put in place.

Risk management is not a one-off exercise. Continuous monitoring and reviewing are crucial for the success of your risk management approach. Such monitoring ensures that risks have been correctly identified and assessed and appropriate controls put in place. It is also a way to learn from experience and make improvements to your risk management approach.

In the business world, risk management is very important matter. Risk management will be even more effective if you clearly assign responsibility for it to chosen employees. It is also a good idea to get commitment to risk management at the board level.

Good risk management can improve the quality and returns of your business.