Some Thoughts on Risk Management

What would you do if you saw a banana peel on the ground? That's risk management.

Risk Management is a discipline that should be practiced by every company, every organization, and every individual in all domains of life.

That’s a big ask, I know. Here's the good part - At some level it actually happens across the board whether we think about it or not.

• Teaching a child to cross the road is teaching them risk management.
• Creating a will and trust so legalities are easier on your loved ones after your passing is risk management.
• Cutting salt from your diet to lower your blood pressure is risk management.
• Creating strong firewall rules to thwart malicious attempts of infiltration is risk management.

We all practice risk management, most of the time. Often, we just don’t practice it well enough. As a result, we end up with problems that could and should have been avoided.

That’s a mistake many of us make (me included). Do you know what happens when you eat Grilled Cheese and Fries for lunch 5-days a week for 3-years, to someone in their 20s who thinks he’s incredibly healthy?

Risk Management begins with identifying the risk. The consequences of a risk may not be large enough or the risk may not be imminent, so it gets easier to brush it aside. But the identification is important.

Once the risk is identified, that’s half the problem solved. The other half is stopping that risk from becoming a reality. And if it does become a reality, then figuring out how to minimize the damage it causes.

That's it for this article. Thank you for reading. Hope you found something of value.

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