Risk management is the process of assessing risk, devising strategies to manage those risks, and monitoring the effectiveness of these strategies. Such strategies are designed either to prevent exposure to risk, to prevent those things from happening, to avoid the negative impact, or to put mechanisms in place to reduce negative impact. As such, risk management is an ongoing process in which potential risks are continuously identified, assessed, managed.
Effective risk management is based on informed decisions, and informed decisions are based on the appropriate information. Make time available to ensure that the board and staff gather this information.
Related External Article: http://www.governance.org.za/the-independent-code/
Author: Adapted from the Inyathelo Publication: The Board Walk | Good Governance Guide No. 2 | Second Edition