Risk
Risks are occurrences in the life cycle of an entity that can be measured. They can be disastrous in their consequences. Risk management requires long term thinking; it requires a prevention approach rather than reaction response.
The plan must ask: "What can go wrong, and can I insure?"
"What can go wrong - court cases"
Risks that can be planned for include:
- Fraud - Editor: Hugh Thomas, chartered accountant
- Environmental Reporting - ETS - Editor: Advitech
- Global financial turmoil (creates opportunities as well as threats).
- Legal claims - Law reports: AR Conolly
- Product liability claims.
- Professional negligence.
- Workers injury and death of key personnel - Law reports: Turner Freeman
- IT failure and computer malfunction.
- Fire.
- Economic changes to supply chains and currency fluctuations.
Risks that are difficult to plan for:
- Economic meltdown of world markets or supply of essentials.
- War.
- Civil unrest.
- Environmental disasters such as tidal waves, floods, earthquakes, and lightning strikes.
