Risk Management Benefits

The need for infrastructure is dependent upon the size of your business. But, start small and only add what you need.

Risk management should remain a means to an end (goal accomplishment) rather than an end in and of itself.

Is there a need to go chasing after competing international standards that are not certifiable? Maybe, but certainly not before you have received any benefits from the basic process.

As for terminology…

Which do you prefer –

1. Risk is any potential obstacle between you and your goals, (Protect-Biz®) or,

2. Risk is the effect of uncertainty on an objective (ISO 31000)?

You decide – which definition leads you to a direct plan of action; or, even repeatable by separate assessments?

Or, how about wrestling with

This represents bottom line value. Moreover, it can create even more value as described in the next chapter.

2. BENEFITS

During World War II, then General Dwight D. Eisenhower said, “When preparing for battle I have found plans to be useless, but planning to be indispensible.” Here are many of the ways risk management planning is indispensible.

As stated earlier, risk management is a means to an end, not an end in and of itself. Thus, it must provide tangible benefits to earn a respected place in the manager’s toolkit. Tough-minded managers rightfully expect nothing less. Some of the benefits have been stated already, but some have not. Some may surprise you, for they all help change unplanned reactions conceived in moments of urgency into thoughtful planned responses.

Foresight instead of Hindsight

“Experience is the teacher of all things.” Julius Caesar

EXPERIENCE, THE TARDY PROFESSOR

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The art of worrying is a common malady in today’s world quite simply because things can go wrong. However, worrying is not productive if the process merely generates a lengthening list of things to worry about. Alternatively, these worries can be written down and confronted with two simple questions: 1) “How can I avoid this?’ and 2) “How can I reduce the impact of this?” Now, this leads to actions that will save time and money and even illuminate new opportunities. This is transforming worry into positive and productive steps to improve your chances of achieving your goals. This bias for action is embedded within the Protect-Biz® risk management planning process.

There are many approaches to risk management available. I challenge you to compare them on this criterion – bias for constructive action. If you are committed to risk management as a means to goal achievement, a strong bias for constructive action is critical. The alternative is a process that can be long on costs but short on constructive results.

Designed for busy people with other things to do

This process facilitates institutionalizing risk management as a part of every decision maker’s