Risk Management Process
Risk Management is a process of analyzing exposure to risk and determine how to best handle that exposure. We undertake a best practice approach and collaboratively help stakeholders understand key risks and manage them within acceptable levels.
These steps outline our approach to risk management:
- Identify the most significant risks arising from operations on an on-going basis.
- Quantify and prioritize risks based on the potential impact and the probability of occurrence.
- Select a response and implement strategy
- Monitor effectiveness of risk management efforts
Represented graphically, it appears like this:
Response strategies to risks are:
- Avoidance - discontinue the activity that generates the risk
- Mitigate - reduce the likelihood and/or the potential impact of a risk
- Accept - retain the risk in its entirety
- Transfer - shift ownership of the risk outcome to a third party (insurance)