This process looks at risks and unfolds them into actual impacts. It then builds backwards into prevention, mitigation, response and recovery based on those IMPACTS.
‘Risk is the probability of an outcome having a negative effect on people, systems or assets. Risk is typically depicted as being a function of the combined effects of Hazards, the assets or people exposed to hazard and the vulnerability of those exposed elements. It is a future state and not, in itself an analysis of impact or outcomes’
Most risks can be identified through a process of risk assessment and analysis. Some risks are ‘so unusual’ that they are deemed ‘out of scope’ for most risk management or mitigation measures.
Risk readiness is moving to a position where identified risks and the associated impacts are planned against. Then the appropriate Risk strategy(ies) are agreed and enacted. The 4 standard risk strategies are:
- Risk Acceptance
- Risk Transference
- Risk Avoidance
- Risk Reduction
Remember .. no one has ever been impacted by a risk, but the impacts of hazards becoming eventualities is a day-to-day problem for businesses