13 Dec 2016

Importance of incorporating Risk Management in Businesses

Importance of incorporating Risk Management in Businesses

Implementing a risk-management program may seem like an excessive work for small businesses, but to consider such a plan has significant role in business operations planning. Risk-management and analysis programs gives both strategic basis and the operational framework for handling crisis within an organization.

Risk management principles can be effectively utilized in many areas of businesses such as occupational safety, operations, finance, public health etc., Risk in general is the combination of the probability of occurrence of harm and the severity of that harm. ISO now has addressed the notion of global risk management approach to businesses in its standards, which gives an organizational-level risk management approach.

Risk assessment, the significant way of analysing and evaluating risks associated with exposure to organization process. Quality risk assessments begin with a well-defined problem description or risk questions, these questions might be.,

  1. What might go wrong?
  2. What will be probability it will go wrong?
  3. What are the consequences?

When answers for these questions are well defined then risk in the process can be easily identified, an appropriate risk management tool will help you do it. Risk management can be done in.,

  • Risk identification
  • Risk analysis
  • Risk evaluation
  • Risk Control
  • Risk Communication
  • Risk Review

After the in-depth analysis below questions can be addressed, these really serves the purpose.

  • Is the risk above an acceptable level?
  • What can be done to reduce or eliminate risks?
  • What is the appropriate balance among benefits, risks and resources?
  • Are new risks introduced as a result of the identified risks being controlled?

To know more in detail about QMS and our advanced service offerings, stay tuned to our blogs ,for further details visit