Hi there! My name is Nancy and I’m an independent consultant who specializes in risk management.
As risk management professionals, we provide essential services to many industries and businesses. We start out by identifying perceived and real exposure to risks, or what may threaten the success, existence and projects of businesses and industries. The idea from there is to analyze and assess risk to determine methods to cope with risk.
It may sound hard to nail down unknowns, but the process is much more methodical and well-researched than that. We look at the whole process by identifying the risks first. We may speak with industry subject matter experts as well as factory workers to determine realistic risks and their anticipated costs if they occur.
This allows us to prioritize the risks according to their cost if they occur. From there, we look at how we may prevent, mitigate, or simply accept an event that is on the risk management list.
In addition, it helps companies determine how much insurance they will need for various geographic regions, company properties, people, and anything else vulnerable to risk. The idea is to analyze to find the top costliest risks and the probability of their occurring.
From there, companies usually decide what risks to address and which to let slide.
A Risk Management Overview
When we talk about risk management we are talking about a process that is aimed at identifying and reducing and planning on risk responses. The idea is to look at the potential risks that could happen. Finding experts to weigh in to add on big and likely risks that could derail a company’s new business idea or a factory explosion at a new site, are essential to the process.
People who have years of experience with the company or its industry are also a great mind to have on hand to contribute what-if scenarios that could destroy a company if they happen. The idea is to get all of the risks meted out, and then prioritize them based on the both the possibility they will happen and on how much they would cost.
From there, the idea is to decide what risks are likely to cause 80% of the problems. Usually, it comes down to only 20% of the risks like it is stated in the Pareto Principle.
Risk management experts will then come up with different manners of addressing the top problems. Is it through prevention, or is it through a pre-planned risk response? Those are the basics of risk management.