What Is Manage Risk?

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Words: 1725
Pages: 7
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Arunraj Rajan
Student No: B-2/10M219
Manage risk
Definition:
“…the possibility of something happening that impacts on your objectives. It is the chance to either make a gain or a loss. It is measured in terms of likelihood and consequence.”

The effective management of risk enables you to maximise opportunities and achieve your outputs.
Risk management is a process used to avoid, reduce or control risks. Some risks can be insured against, others can not. This fact sheet is developed to help organisations deal with their insurable risks but can be applied to all risks.
Ignoring the risks which apply to your business activities or the events you have planned could impact on the following:
• the health and safety of employees, customers, volunteers and participants • your reputation, credibility and status
• public and customer confidence in your organisation
• your financial position
• plant, equipment and the environment.
A systematic approach to managing risk is now regarded as good management practice. Risk criteria are then used to rank risks and decide whether they are acceptable or not. Consider the level of risk your organisation is willing to accept from its environment. The factors which will effect the way the event is managed are:
Physical e.g. pony ride injuries
Legal e.g. potential litigation from injuries at the site or food poisoning
Environmental: e.g. weather conditions could make you postpone of cancel the event
Stakeholders who need to be involved in managing the risk of the event
Museum/gallery volunteers
Local council
Local community groups
Local media
Some of the risk criteria identified as to whether a risk is acceptable or not are
 Likelihood of death or serious injury
 Likelihood of litigation
 Likelihood of inclement weather
 Likelihood of negative publicity

1. Establish the Context

What does your organisation do? Anything that poses a risk to what your organisation is trying to do needs considering; this will include social, economic, legal, technological or environmental factors. You may not be able to control some of these factors but you can minimise the risk they might pose.
In establishing the context you need to also identify the stakeholders; these are the individuals who may affect, of be affected by, any of your decisions on risk management. Stakeholders include employees, volunteers, visitors, insurance organisations, government and suppliers. Each stakeholder will have different needs, concerns and opinions; it is important to communicate with the stakeholders during the risk management process.

2. Identify the Risks

Identify the types of risks which arise from your activity and environment. These can be:
Physical: this could involve personal injuries, environmental and weather conditions and the physical assets of your organisation
Financial: this could mean fraud, theft, membership fees, insurance costs, loss of funding etc.
Legal: this includes responsibilities imposed by federal, state or local governments Ethical or moral: involving actual or potential harm to the reputation or beliefs of an individual or organisation
How do you identify the different types of risks?
 Look at records of previous activities, events or exhibitions
 Examine the results of personal, local or overseas experiences
 Interview/survey stakeholders
 Analyse specific scenarios.

To identify the risk they have:
Looked at the records of previous accidents
Conducted a physical inspection of the museum/gallery grounds
Talked to stakeholders
Looked at risk management plans of other small museums and galleries
The risk analysis revealed that the most common source of risk was:
Human behaviour e.g. inexperienced staff
Natural events e.g. inclement weather
 Legal e.g. potential litigation
The major risks identified by the board were
 People falling off the pony rides
 Storms and wet weather, meaning the event has to be cancelled
 Food poisoning

3. Analyse the Risk

In analysing a risk
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