For any individual or business enterprise, certain risks are imminent. While such risks cannot be totally eliminated, by considering appropriate measures they can be mitigated to reduce their financial implications.
There are many different types of risk but the most common are accidents at workplace, fires, explosions, natural calamities, legal risks, frauds, thefts, lawsuits, uncertainty of financial markets, failure of projects, credit risks or storage or security risks just to name a few.
The idea behind managing risks is to protect business from being vulnerable. While many internal plans focus on keeping the business viable by reducing financial risks, a wider risk management plan can be designed to protect employees, customers and general public from negative events and natural calamities. Risk management practices are also about preserving physical facilities, data, records and assets which are engaged by businesses in its operations.
Having a proper risk management plan is an important part of maintaining successful and responsible business. Every business or individual should have one as it helps protecting people associated with the business or an individual as well as the physical and financial assets.