What is Risk Management...
Risk is part of life. Avoiding all risk would result in no achievement, no progress and no reward.
The principles of risk management are simple and can be adopted by any company. Large complex organizations will require more complex solutions but for the average SME business, risk management is an important and cost effective tool.
It is not just about insurance, it's about managing risk. All companies face threats and our role is to help them identify, manage and control them. The business benefits to properly managing risks can be enormous." Graig Eason, MD of IMG LTD"
The management of risk is a fundamental business issue, by breaking risk down into different categories, we help companies identify and manage these risks, Many risks faced by a business are not insurable and how businesses manage these can be critical to their growth and prosperity. The cost of implementing the appropriate measures should outweigh the consequences of not taking action. The true cost of risk is very much like an iceberg with the potential cost of non-compliance dwarfing the cost of managing the risk.
IRM defines risk as "The combination of the probability of an event and its consequence. Consequences can range from positive to negative." All organisations have objectives at strategic, tactical and operational levels - anything that makes achieving these objectives uncertain is a risk. As our world becomes increasingly volatile and unpredictable, we must cope with greater uncertainty.
Risk management is the systematic process of understanding, evaluating and addressing these risks to maximize the chances of objectives being achieved and ensuring organisations, individuals and communities are sustainable. Risk management also exploits the opportunities uncertainty brings, allowing organisations to be aware of new possibilities. Essentially, effective risk management requires an informed understanding of relevant risks, an assessment of their relative priority and a rigorous approach to monitoring and controlling them.
To be effective, risk management must be proportionate to the size and nature of an organisation. It can range from a risk assessment for a community event up to a sizeable, integrated process for a multi-national.
Enterprise risk management (ERM) refers to an integrated or holistic approach to managing risk across an organisation, using clearly articulated frameworks and processes led from board level. Risk management should be embedded in the general management of an organisation and fully integrated with other business functions such as finance, strategy, internal control, procurement, continuity planning, HR and compliance. The degree of integration will differ between organisations depending on their culture, implementation process, ways of operating and external environment.
Our wide experience and qualifications provide the comprehensive knowledge and practical skills to support individuals and companies in managing probable risks.