Risk management is the process used to identify, avoid, reduce or control risks. There should be a balance between the cost of managing risk and the benefits you expect from taking that risk.

The management of risk is very important. This means minimising or avoiding potential loss in a structured, methodical manner. It encompasses a range of risks including operational, financial and behavioural, and also information technology and external risk.

Some risks may be transferred, for example, through an insurance policy. Others, such as unforeseen events, may be reduced through risk management programs and still others may be minimised through asset or portfolio diversification and proper internal control systems. It is important to understand that a proper risk management system is as much about identifying opportunities as it is about mitigating potential losses.

An excellent framework already exists to develop a comprehensive risk management strategy. Standards Australia has published an Australian and New Zealand Standard for Risk Management benchmarking. This standard AS/NZS 4360 provides a general model for the management of risk involving the following stages:

• Establishment of the context within which risks are created;
• Identification
• Analysis
• Evaluation; and
• Treatment of the risks

This process entails ongoing communication and consultation by management and staff within each professional practice and help from professional associations such as ACSIS Ltd.

ACSIS Ltd regularly conducts risk management seminars and also has a policy of providing speakers to seminars organised by others. Generally the provision of speakers is free of charge providing a reasonable number of participants attend. To date ACSIS Ltd has made over 100 seminar presentations Australia wide.

In addition to the above presentations ACSIS Ltd generally makes an annual presentation to university students.

As a basic introduction to risk management, visitors to this web site might like to consider the following chart to help identify risk and formulate a management strategy.

Under “Publications” visitors will find details of a number of items, books and material specifically devoted to risk management.