Every organization, business, and community needs to know and understand the risks they face. These risks can cause damage to buildings, business, finances, the environment, and even cause loss of life or injury to customers and staff. A Risk Assessment helps you find out exactly what risks you are facing, which in turn can help you mitigate them.
Risk Management and Risk Assessment are often confused. Sometimes they are interchanged, other times one is left behind. It is key to remember that Risk Management and Risk Assessment are partners. While both refer to different parts of the process, they belong together.
Risk Assessment is the information.
Risk Management is the plan.
While some risks can be easy to predict, others are beyond control. Without a Risk Assessment, you will not know what each of the hazards and risks are, or their harmful potential. Without a Risk Management plan, you won’t know how to deal with the risk when it happens.
Every business, organization, group, or community faces both hazards and risks. Oftentimes the words ‘hazard’ and ‘risk’ are interchanged. However a hazard and a risk are not the same thing. A hazard is something that poses a threat to life, health, property, or even the environment. A risk is the chance (big or small) that someone or something could be hurt or damaged by that hazard. It is important to understand the difference between the two so you can properly plan your risk management strategy.
Risk Management is an important part of planning for businesses, organizations, and communities. This brief video explains why Risk Management is key for eliminating or reducing the risks you face in your business or organization.