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When is a Risk Not a Risk?
How to distinguish risks from non-risks, particularly from their causes and effects.
One of the most common failings in the risk management process is for the risk identification step to identify things which are not risks.
Clearly if this early stage of the risk process fails, subsequent steps will be doomed and risk management cannot be effective. It is therefore essential to ensure that risk identification identifies risks.
This paper addresses two key requirements for effective risk identification. The first is a clear understanding of what is meant by the term “risk”. The second is to be able to distinguish risks from non-risks, particularly from their causes and effects.
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