Risk management is a process in which risks are identified and controlled proactively. It allows businesses to improve their chances of success by minimizing threats and maximizing opportunities.
Risk management is essential to a business as it helps prevent financial losses and increase revenue. Other benefits of risk management include,
- Help to identify projects that might be headed toward trouble and apply solutions
- Help to prepare for unexpected threats beforehand
- Help to provide enough data to make better decisions regarding projects/ events
- Help to improve communication between stakeholders and project teams
- Help teams stay more focused on the key outcomes
Key stages of a risk management process are identifying risks, analyzing risks and planning to mitigate risks. These are detailed below along with risk management techniques you can use.