Risk management and aversion especially in terms of the corporate world can be imagines as walking on a tightrope. A lot of us who have given a major part of our lives to working in this field have felt at some point of time overwhelmed, even threatened about risks that can be thought to be completely debilitating so as to want resources, to overcome them. But when the risk is faced and managed well, a lot of us have also turned around and exclaimed, “Well, that was not that bad after all!”
This is precise what risk management is all about!
Corporate honchos around the world will tell you that risk management is not a one-time thing. It is an exercise that all corporate have to undertake often in order to identify the potential risk that the company can face and also be able to think upon a strategy that will help eliminate such risks without causing too much of an impact on the business processes of that corporate.
Risk management cannot be a knee-jerk reaction:
A lot of financial gurus have written pages after pages on the fact that risk management per se must never be treated as a crisis response plan. It is not something that happens once in a couple of years and that is it! On the contrary, it must be continuous and much deserving of the attention that it is able to garner as of now.
Making a plan is imminent:
Corporate must never have an attitude of crossing the river when we get to the bridge. An appreciation of risk along with the proactive thinking of being able to manage them in the best possible manner is the need of the hour. The catchword is to be “proactive” and not “reactive”.
Every corporate must strive to identify the risks that they could potentially face. Classification of risks is also important so that the employees know the seriousness of the situation and even previous experiences can be drawn in to be able to come out with a solution.
You cannot eliminate risks:
No, it is a myth that one can avoid risks at all. Every corporate whatever their size small, medium or large will invariably face risks. The idea is never to avoid the risks altogether ever but to manage them in the best of the possible ways so that the corporate comes out stronger than before!