“Many managers and executives fail to see the difference between risk-taking and risk management. Quite often seasoned managers and executives tell me, ‘Risk management prevents risk-taking.’ Nothing could be further from the truth. You will be a smarter risk taker when you practice risk management. You take risks every day but may not practice risk management.
First, risk management is more than just worrying about tomorrow. In today’s world, so many things can go wrong to keep you from staying in business. Second, if your company is not innovating or growing, it will not survive. These two realities mean that every organization must have a clearly defined risk management programme that equips employees with tools to anticipate the cost or downside of each risk faced.
Risk management assists you and other decision-makers in making informed choices, prioritizing actions and distinguishing among alternative courses of action.”