Risk Management

Risk management is the process of identifying, analysing, evaluating and treating the risks involved in a business. It is an essential part of any business's day-to-day activities and should be the first step taken when carrying out strategic and business planning.

The Risk Management Process

The first step in the process is the identification of risks, which requires a thorough understanding of both the business and the environment in which it operates. Once identified, the risks are analysed in order to assess the existing control measures in place within the business.

The risks are evaluated to determine whether they are deemed acceptable, in which case the risk must be regularly monitored and reviewed, or unacceptable, in which case the risk must be treated.

Treatment strategies for unacceptable risks are developed and determined depending on the type of risk, with the goal of turning unacceptable risks into acceptable risks.

The risk management process must be thoroughly documented, and an ongoing risk management plan should be monitored and reviewed on a regular basis.

For more information on Risk Management please visit the Standards Australia Risk Management Portal.