Risk Management or Opportunity Management ?

Risk Management – Two words ‘’Risk’’ and ‘’Management’’ coined together giving an ultimate meaning of ‘mitigation to risk’. ‘Risk’ is universal, while ‘Management’ is Unique to address the particular risk, which definitely varies from one entity to another.

?The way the entities mitigate the risk depends on the organization ‘culture’ (of course the same include risk culture also - the way management see every risk element, putting controls in place for reduce the possibility of recurrence & impact and finally immediate solution/mitigation plan in connection with the same). ‘Risk appetite’ depth and shallowness also depends on organizational culture i.e carrying a particular risk as part of business or shelve it. All are very much dependent on ‘’tone at the top’’.

We accountants (may be it is human nature) believe in “Conservatism’’. As a result, “Risk Management’’ with all its lexical connotations always gives a flavour of negativity i.e by managing the risk better the entity will come out of the ‘risk’ or leave with ‘residual risk’.

If we consider an ‘unbiased coin (not the coin used in film Sholey)’, the every risk associated with an ‘’Opportunity’’. Latest example of COVID, when all the Medical/Pharmaceutical Companies even struggle with health of their Scientists, Workmen, Channel Partners to run their Biz/Production facilities; some of them came up with Vaccine for the same. They put ‘’opportunity Management’’ in the first place over ‘health risk management’. Similar examples can be considered for other industries/situation also.

When positivity is required in every sphere of life, ‘’Opportunity management’’ may be a better way of managing the emerging scenario. Take couple of more examples –

a.??????Timely placement of a better product at market place, possibly thwart ‘price pressure of Competition’.

b.??????Leveraging IT (Information Technology) as part of replacing menial work load.

etc. etc.

Traditionally when a ‘risk’ being mitigated, the focus shifted from the same but ‘’Opportunity Management’’ incessantly looks forward to reap the maximum benefit/s. What is Your thought & opinion?