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The effect of uncertainty on our business objectives is often the difference between success and failure.

The international standard for risk management recommends eleven principles that an organization should at all levels comply with for risk management to be effective.

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Building the right framework is always a good start.


Creating the right environment can influence the behaviors towards business practice, shaping the required culture.  The international standard for risk management recommends adapting the suggested components of a risk framework for your business need.                                                                                                                           
                
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A sound process.

The risk management process can be applied intuitively or with a more planned approach depending upon the depth of analysis required.  The seven step process is an integral part of business management.  It should be embedded into the business process and practices.

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You can have the best systems and tools, but if no one uses them, you have nothing.

Understanding how to integrate and implement risk practice and associated tools to the right level of depth will determine its ultimate sustainability and effectiveness.

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Think about the human factors.

The behavioral psychology of people plays a significant role in the management of risk.  Always over-looked and never understood.  Human factors are the number one risk factor that will prevent you from achieving your objectives.  Good risk management integrates human factors in its implementation.

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