Tuesday, 3 October 2017

Risk Management: the new Frontier in Commerce

Risk Management is more about getting the "maximization of benefit with the minimization of risk" or we say getting the ultimate point at the "cost-effectiveness curve"


Cost-Effectiveness is divided into 3 genres:

1) Cost-Benefit Analysis
2) Cost-Utility Analysis
3) Cost-Effectiveness Analysis


I won't get into all 3 in details but, I want to discuss "Risk Management"


"Risk Management" fall into the concepts of the acronym " I AM - SAFE"

1) I - RISK Identification - Identify all the risk or hazard that is around us.

2) A - RISK Assessment - Assess the severity vs the probability or chances the risk might occur.

3) M - RISK Management - Manage the risk via substitution, replacement, elimination, control or personal protective equipment (PPE).


This is basically, risk management whether in the workforce, bank, stock market or even in a disaster.


"If you manage your risk properly, the chance of an event occurring will be lower due to Murphy's law - that strike the unprepared."


"Fate favors those who are prepared."


Good Luck! Amigo!

Yours Sincerely,
Dr. Lion.


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