Risking It All?

Have you really considered the worst that can happen in any given situation? Are you ready to deal with any natural disaster - an earthquake, a flood, or a forest fire? One of today's expanding areas of study is Risk Management. Risk Management involves an analysis of business processes, priorities, and communications used to establish "natural" responses to unexpected events. This discussion will outline the basic concepts of Risk Management, including some recommendations and conclusions, supported by a detailed example. The goal is to provide you with the skills to successfully manage your own unique circumstances.

What is Risk Management?

Risk management is a process of anticipating what will happen but not knowing when. There are two major effects at work - multiplicity and duration. Multiplicity deals with the number of simultaneous events. Duration deals with the frequency and time of events. Generally speaking, human beings are limited to two variables in their ability to respond to a crisis. Therefore, it is important to identify these early in risk management discussions. This can be done, again, in terms of multiplicity and duration.

Why practice Risk Management?

Practising Risk Management builds confidence, it clarifies the actions of the emergency staff, and ensures that the required communications channels are established. Being able to rely on these basic building blocks will allow the team to respond - not only to the planned event(s), but also for the unexpected one(s).

How do you start the Risk Management Process?

Risk Management should be based on the following factors Probability, Process, Priorities, Optimisation and Public Relations. It is important to deal with the psychological element of each individual or group's reaction. The objective should be to establish arrangements needed to ensure continuity of operations. In the public domain, you need to manage media relations carefully. It is very important to ensure that one message - one voice, is heard from everyone.

What really happens?

When an event does occur, simply do four things - (1) make the threat visible, (2) stick to the facts, (3) follow the procedures, and (4) communicate! These procedures and plans will have been practised many times before - put your mind at ease and guide your actions calmly and intelligently.

Details, Details...

Imagine that you are part of your local bank's Year 2000 team - you have been hired as a Risk Management expert and are required to help the airport establish its plans for the coming Millennium. What are you going to do?

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