What is Risk Management?

Risk management is a process of identifying, assessing and minimising risks to your organisation.

Authored by:

iClick2Learn Team

Table of Contents

Introduction

Risk management is a process of identifying, assessing and minimising risks to your organisation. A risk management plan also outlines procedures for dealing with risks in the event that they eventuate.

There are a variety of risks that could affect your organisation. 

Your committee as a whole is responsible for managing risks to your organisation. As committee members, you have a legal obligation to reasonably plan for and minimise risks to your members, organisation and community.

Types of Risk

Financial risks include:

  • Insolvency
  • Unable to pay bills or suppliers
  • Fraud
  • Theft
  • Negligence

Legal risks include:

  • Negligence
  • Being sued
  • Not complying with relevant laws and regulations
  • Personal Liability

Reputational risks include:

  • Developing a reputation as untrustworthy or unreliable
  • Negative publicity
  • Loss of community or member confidence

Environmental risks include:

  • Pollution
  • Natural disasters
  • Floods and fires
  • Chemical hazards
  • Injuries
  • Disease and infection

Strategic risks include:

  • Competitors
  • Marketing
  • Projects and Programs
  • Committee changes

Technological risks include:

  • Hacking
  • Hardware and software Failure
  • Human error
  • Spam
  • Viruses

Creating a Risk Management Plan

Creating a risk management plan doesn’t have to be a long and complex process. The size of your organisation and the type of activities you undertake will guide how detailed your plan needs to be.

Get your committee together and run a brainstorming session about what types of risks are possible from the above categories, and any others you think of.

Write down the list of risks identified, and then ask the following questions for each individual risk.

  • How likely is the risk to occur?
  • What is the cause, or the trigger point for the risk occurring
  • How can we minimise or prevent the risk from occurring
  • What will we do if the risk does occur
  • Nominate one person to be responsible for each particular risk

With these answers you can create a risk register, and a risk management plan. We have provide a template matrix to help you get started (Risk Matrix Download)

Conclusion

No matter the size or type of your organisation there is always the chance of risks. A bit of forward thinking and planning can protect your organisation, members, and the community.

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