Why is risk management important?
Risk management is a technique whereby the effects of uncertainty regarding a project or procedure is identified, assessed and prioritized. It is then, analyzed and acted on to minimize the impact it can impose or maximize the opportunities the risks can offer or provide. Risk management is a process of anticipating what possible events may occur and what possible consequences can be met as a project or procedure is being approached and studied. Risk management serves as a tool in making a project, business or company successful in whatever endeavor there is that needs to be overcome and whatever goal there is that is aimed at.
Because of the growing industrial economy all over the world, in different countries and in various cities, risk management is an important element in pioneering an object of interest. Guided by the principles of risk management such as creating a value, becoming an integral part of the organizational processes as well as in decision making, being open to change and becoming transparent and inclusive, risk management is always deemed to of great essence and value, especially in the world of business, politics and economy. Risk management is important because enables one to concerned with results, of which is highly uncertain, and be ready on how to deal with such uncertainties. It is a proactive approach that provides valuable insights to the assigned personnel to be alert of the potential risks and be ready for contingencies in cases when the unknown will happen.
Today, the era of shrinking budgets, poor developmental strategies and rising technological demands are on the verge of bursting, risk management is one effective and reliable art and science of planning, analyzing, implementing and controlling unknown events to acquire an outcome that is highly favorable to all.