1. Risk management is an obscure exercise in quasi-mystical futility
In it’s most common usage, the word “risk” is often understood simply as a synonym for a failure. Even in the more measured situations, it’s understood as a proverbial promise of an eventual failure or threat. This being the case, it is understandable that the unpalatable associations the concept of risk conjures into existence make approaching risk management reluctant and burdensome.
Undoubtedly, even the most impulsive daredevil thinks twice before deliberately seeking risk, and in no situation welcomes it heartily.
Even among those who emphasise the role of reason over sentiment and intuition in the decision-making process, it’s by no means uncommon occurrence to eventually end up favouring knee-jerk reasoning over systematic analytical approaches when discussing risks. Disconcertingly often this ends up obscuring the matter and leads to more uncertainty about the simple nature of risk management. Which is that the risk management’s fundamental objective is to assure that uncertainty does not deflect the endeavour from the business goals.
It is of utmost importance that everyone demands from themselves a degree of fortitude to accept the existence of risks. And at the same time, it’s vital to comprehend that occasionally the realisation of risks cannot be avoided by any means. However, in this regard, it’s important not forget that all successful business decisions are based upon measured, systematic and calculated risk-taking, i.e. risk management.
It’s a pity that one of the core pillars of successful business practices is continuously overlooked when outlining the current business environment. Everyone involved with making business decisions should come to terms with the notion that risk is a part of the most fundamental actions any business or organisation takes every day. There are no separate risk management decisions, isolated from the core business, there are only business decisions where the risk has been taken into account or not.