Risk management is a cycle. That means that it is not something that gets checked off a “to do” list but it is a continuous activity. Having a risk management process means that your organization knows and understands the risks to which you are exposed. It also means that your organization has deliberately evaluated the risks and has strategies in place to remove the risk altogether, reduce the likelihood of the risk happening or minimize harm in the event that something happens.
At a very basic level, risk management focuses you on two fundamental questions:
- What can go wrong?
- What will we do to prevent the harm from occurring in the first place and in response to the harm or loss if it actually happens?
via Risk Management in HR | HR Planning | HR Toolkit | hrcouncil.ca.