What is Risk Management?

Effective risk management can bring far-reaching benefits to all organizations, whether large or small, public or private sector, as well as individuals managing projects or programmes.

Effective risk management is likely to improve performance against objectives by contributing to:

  • Fewer sudden shocks and unwelcome surprises
  • More efficient use of resources
  • Reduced waste
  • Reduced fraud
  • Better service delivery
  • Reduction in management time spent fire-fighting
  • Better management of contingent and maintenance activities
  • Lower cost of capital
  • Improved innovation
  • Increased likelihood of change initiatives being achieved
  • More focus internally on doing the right things properly
  • More focus externally to shape effective strategies.