Risk Management – A case study on consequences of Bad Risk Management

• Date: November 04, 2009

Risk Management involves identification, assessment and prioritization of risks. It Identifying risk and proper mitigation becomes critical for successful business. The strategies to manage risk include transferring risk onto another party, avoiding the risk, reducing the negative effect of risk, and accepting some or all consequences of a particular risk.

Factors from which a business risk can arise are:

• Insufficient Planning – What is the impact of assumptions not backed by research?
• Bad Relationships – What is the impact of not nurturing good relationship with stakeholders?
• No Hedging – What is the impact of improper hedging of risk?
• Lack of Discipline – What is the impact of mismanaging expenditure, debts, etc?

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