Risk Management

IRM

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 maximise 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.

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