Explain why it is important to take a balanced approach to risk management
Mention the word ?risk,? and most board and management types picture a media feeding frenzy, funding being pulled, and the collapse of civilization as we know it?at least as far as the organization?s future is concerned. [ [ Risk makes us feel unsafe because, by definition, it focuses on what can go wrong if we pursue a particular course of action.
But just as things can go wrong, outcomes can
also be better than expected. Life is full of surprises, and some of those surprises are very good indeed. Risk management is not just about preventing the bad surprises, but also about maximizing the good surprises. It?s not just about putting out fires, but also about capitalizing on opportunities.
Risk management strategies use your resources and activities to prevent or reduce losses and to make gains for your organization. We?re going to look at three basic elements that put you in control of what happens as much as possible in an uncertain world. First, take the emotion out of the discussion. Second, identify the key risks and benefits. And third, manage both the risks and the benefits. ] ]
There are no new answers.