“Why would someone want a Risk Assessment done for their business?”. This is a question that was asked of me a few weeks ago by a client. It made me realise that most people don’t usually give any thought to what potential risks they or their businesses could be exposed to.
I had a think about the pros and cons of performing a Risk Assessment and having a Risk Management Plan for any business and listed my thoughts below:
- Provides a snapshot of the business with regards to current or future risks and issues
- Identify areas where the business can be protected from different types of risks
- Provides a basis for implementing the most relevant and cost-effective safeguards and to avoid costly and long-winded resolution of issues
- Identify opportunity risks so that the business is ready for or working towards potential opportunities that may arise as a result of certain situations
- Increase the likelihood of achieving business or project objectives
- Provides customers and stakeholders an improved confidence and trust in the business
- Costs time and/or money to perform a risk assessment
- Costs time and/or money to implement recommendations
- Monitoring risks can be time consuming
- Not all risks could be identified upfront as these change depending on a variety of circumstances
- Not all risks will eventuate
It is important to note that Risk Management is an ongoing activity and doesn’t stop after an assessment is completed.