Implementing Risk Management

The concept of risk management is to apply philosophy that can protect an organisation in the short, medium and long term. It is to provide management with the necessary know how, competencies and information generated by a wide array of tools and techniques in order to constantly assess risks and minimise the negative impact on the organisation.According to several standards around the world risk management is described as a holistic, integrated approach to enable the stewardship of organisations in a safe, confident and positively impacting manner with minimum effects from a negative standpoint. The concept of risk itself is described as the combination of the probability of an event occurring with several negative implications on the organisation. NASA for instance uses a comprehensive risk management philosophy as a continuous integrated process where risks are constantly identified analysed and their impact measured. This provides NASA with the opportunity to prioritise risks and to develop and implement risk mitigation strategies or fully acceptance of minimum risks. By using an integrated philosophy NASA tracks risks and their mitigation implementation plans in order to assure that risk information is communicated to all the key players within the organisation.