Risk Management and Analysis

se does it serve and what real benefits does it provide? In today’s o overextended work environments, it can easily be perceived that “risk management and analysis” is just another hot buzzword or fashionable trend that occupies an enormous amount of time, keeps the “administrative types” busy and feeling important, and just hinders the “technical types” from getting their work done. However, risk management can provide key benefits and savings to a corporation when used as a foundation for a focused and solid countermeasure and planning strategy. Risk management is a keystone to effective performance and for targeted, proactive solutions to potential incidents. Many corporations have begun to recognize the importance of risk management through the appointment of a Chief Risk Officer. This also recognizes that risk management is a key function of many departments within the corporation. By coordinating the efforts and results of these many groups, a clearer picture of the entire scenario becomes apparent. Some of the groups that perform risk management as a part of their function include security (both physical and information systems security groups), audit, and emergency measures planning groups. Because all of these areas are performing risk analysis, it is important for these groups to coordinate and interleave their efforts. This includes the sharing of information, as well as the communication of direction and reaction to incidents. Risk analysis is the science of observation, knowledge, and evaluation—that is, keen eyesight, a bit of smarts, and a bit of luck. However, it is important to recognize that the more a person knows, the harder they work, often the luckier they get. Risk management is the skill of handling the identified risks in the best possible method for the interests of the corporation. Risk is often described by a mathematical formula: