Risk management is the identification and prioritization, based on the impact to the business, of unforeseen events and issues followed by activities to mitigate and control negative outcomes that might result in unacceptable damage to the profitability, reputation, or success of the business. Tools, processes, and strategies are implemented or developed to support these activities.
We live in an extremely volatile time, when even large, established enterprises are reevaluating their futures. With the emergence of the COVID-19 pandemic and its ongoing impact on world markets, businesses are having to contend with heightened risks, along with the prospect of continued disruption well into the uncertain future.
To manage the impact of these threats and uncertainties, successful businesses are taking a renewed interest in optimizing and enhancing their approach to risk management. This means refocusing traditional strategies away from simply reacting, to proactively identifying and preparing for possible risks long before they emerge. With the right approach to risk management, businesses large and small can reduce not only the potential negative impact of specific risks, but also the likelihood of those risks occurring in the first place.