Risk Management

There is no undertaking without risk: every organisation, every person has to live with risks. It is only from risk that opportunities emerge. While some may be happily accepted, others may not be tolerated.
At the core of risk management lies the process of weighing and choosing the appropriate treatment of risks. In reality most risks are left ”untreated.” This is often the only correct decision - but it should always be an informed one. It is therefore always necessary to be aware of the risk environment of an organisation. Risk management is an ongoing process which involves three significant phases:

• analysing the risk,
• treating the risk and
• monitoring the risk.

For a newly discovered risk, the process may begin in any one of the three phases, but it should not come to an end until the risk no longer exists (seldom enough).

In a one-person operation it is clear who is responsible for risk management. In larger organisations a structured communication process is required so that an informed decision about risks treatment can be made. Constructive internal risk communication is the basis of efficient risk management and obligatory for every organisation.

Whistleblowing is a drastic form of risk communication. Sometimes it fails to be sufficiently constructive; often it falls on deaf ears internally. Always is it an indication for dangerous gaps in risk management. The frustrated internal whistleblower will be prone to prove his loyalty just by pointing out risks externally – to prevent further damage. On this website you will find reference to more constructive ways – and for otherwise dealing with the consequences.