TABLE OF CONTENTS Risk Management is the process which aims to help organisations understand, evaluate and take action on all their risks with a view to increasing the probability of their success and reducing the likelihood of failure. (Institute of Risk Management, 2003)
Risk Management is a strategic management activity involving a systematic approach to the management of risk. By formalising the practice of risk management it is possible to reduce operational costs to a business by diminishing the risks incurring accidents or loss.
Service industries' profitability depends on people using facilities and services. Any perception that a business premise or its practices are unsafe can be damaging to the reputation of the business. Prioritising the application of risk management to every aspect of a business ensures that risk or damage to either the business or individuals is greatly reduced or removed.
Risk Management is a strategic and systematic approach which:
Carefully examines the diverse activities of a business
Is continuous and developmental
Identifies potential risks
Assesses those risks for potential frequency and severity
Removes those risks which can be eliminated
Reduces the effect of those that cannot be eliminated
Increases probability of successful actions taken to investigate risk
Supports financially the consequences of the risks that remain.
Risk Management is a quality management system which ensures that business is conducted to the highest possible standard with the best quality of customer care. The result of this will also be a reduction in...
