Risk is defined as an uncertain situation, event, or condition that involves exposure to danger,
harm, or loss. It is a part of every aspect of life. Taking a chance on something or trying
something new is risky, but not taking risks will not help you learn and adapt to different
situations or environments. Risk is necessary for growth.
Risk management is the process of forecasting and identifying risks, and then analyzing and
evaluating them to respond to threats. It is a vital life skill because it helps you avoid problems
or mitigate any negative impacts. The goal is to understand risk fully enough to make informed
decisions about how to move forward.
We all have to manage risk daily in our personal and professional lives to sustain health and
safety and maintain business interests–it is vital to your growth and success. Taking risks may
require you to step out of your comfort zone and stretch yourself beyond the status quo. Honing
your risk management skills is key when it comes to taking risks without fear because those
skills can help you to be comfortable with being uncomfortable.
BASIC STEPS OF RISK MANAGEMENT
1. Identifying the risk(s),
2. Analyzing the risk(s),
3. Evaluating and prioritizing the risk(s),
4. Responding to the risk(s),
5. Monitoring impacts of the risk(s) and response, and
6. Reattacking as needed to further mitigate the risk(s).
