An online introduction to the basics of risk management
for business professionals
Risk and uncertainty
As a society, as organisations and as individuals, we all live
with uncertain futures. Indeed, it’s a key part of being human. We
all have things we want to achieve, opportunities we want to
exploit and changes we want to make. But we can never be
completely sure how things will turn out - risks in the real world,
and risks arising from our own actions (or inaction), if not
effectively managed, may stop us achieving our goals.
Sometimes these risks will lead to direct monetary loss, but
they can also lead to illness and injury, damage to the environment
and property, business failure, loss of employment or waste of
Conversely though, risk taking can also lead to achievement,
gain, happiness and progress. Risk has a distinct and substantial
upside (opportunity), as well as the more obvious downside
Risk management applies a systematic and rigorous approach to
understanding, analysing and responding to risk, with the aim of
making better, more informed, decisions and increasing the
likelihood that we will achieve our objectives.
The greatest challenge, however, is to combine all of this with
a strong understanding of the behavioural and cultural aspects of
how we perceive, interpret, communicate and respond to risk.
Understanding and influencing why people behave as they do, what
incentivises them to act in a particular way and how decisions are
made is indeed an important skill.
This introduction provides delegates with a basic introduction
- The concepts of risk and uncertainty, the types of risk faced
by organisations, including both upside (opportunity) and downside
- The importance of understanding the external and internal
- The skills to be able to identify, measure, evaluate and
prioritise risks in their organisation.
- The key techniques for treating risk – and where to obtain
further help in their application.
- The behavioural and cultural aspects of risk
- The value and benefits of integrated risk management, and how
it supports strategic, tactical and change objectives
- A simple framework for the management of integrated business