Remember: when life gives you lemons, stir up a treat!!
Risk Management on the other hand ensures that we identify, mitigate and manage Risks, so that our business can sustain (if not thrive) even in extremely adverse situations.
By mitigating potential ‘risky’ situations, we can lessen their occurrence probability and of course by managing risk, we can ensure that we are correctly evaluating all the associated impact and liability that inadvertently ensues- so that we can correctly include these projections within our business costs and profit forecasts!
Risk Management can be implemented to develop contingency plans and prepare for any eventuality. Controls that are put in place to avoid/mitigate risks may not show immediate returns but do go a long way to increase profitability and maintain brand value.