Manage; avoid; share; or transfer risks; skillfully
Business typically throw up challenges, risks, threats and opportunities for the organizations in a dynamic business world. Much of the organizational success depends upon the ability of the management to foresee the risks as well as emerging opportunities. Risk management therefore holds the key to keep the Pandora's Box closed or open the doors to opportunities.
Risk assessment involves identification, measurement and prioritization of entity risks at the operational as well as at the strategic levels. This exercise enables the management to take informed decisions on whether to manage the risks in-house, avoid them with alternative strategies, share them with others say with stake-holders, transfer the risks to others such as insurance. Risk management becomes strategic for survival in corporate world, or in politically sensitive scenarios of public sector governance, or to ensure effectiveness of donor funded programs and projects.
Red Flag experts are drawn from different backgrounds so that they address the unique requirements of specific private and public sector industries, 'country-province-local government' scenarios, or non-profit organizations to name a few. The methodology and the rigors of its application vary with the parameters of unique situation. At the heart of all risk assessment exercises, there is due diligence performed for assurance on quality of the product.
The risks are typically assessed using the probability of their occurrence (likelihood) and the estimated impact on the organization, tactically and strategically.