Risk is inherent in everything we do.  In business, as in our everyday lives, the way risk is managed is an integral part of success.  The need and importance of risk management is now widely regarded in successful commercial and public sector organisations.

Those organisations that fully understand and appreciate their risk profile and environments can make informed decisions on how to best achieve their objectives.  Organisations that fail to recognise and manage their risks can destroy value for their stakeholders, squander resources, and ultimately damage their organisation’s image and reputation.

How can you tell if your organisation has its risk management in hand?  Here are 10 signs that you may need some extra help.

1. You are not aware of the material or significant risks facing your organisation

2. You do not follow a formal process to identify and quantify your risks

3. You do not fully understand the risk controls or treatments that are currently in place, or monitor these controls to ensure compliance and effectiveness

4. You primarily rely on your insurance programme to cover all of your risks

5. You do not have a dedicated risk manager or a staff member with technical knowledge or experience in risk management

6. You are conducting a major project and require a risk assessment

7. You are not sure which of your risks are insured and which of your risks are uninsured

8. You have not established your organisation’s risk tolerance and risk appetite

9. You are not sure if your risk management department is running efficiently or effectively

10. You are not sure how your risk management processes and procedures compare to other equivalent organisations, or against benchmark standards or guidelines