Safety and Risk Management
Safety and risk management are critical aspects of modern business. Risk is the financial aspect of exposure and safety is the human aspect. The two should be considered together in order that measures taken will protect both the business or organisation as well as the humans involved in the conduct of the business.
In addition to protecting humans, risk allows a business or organisation to protect its own interests, including disaster management (ability to withstand the unexpected), contingency planning (the ability call on alternative options under duress), continuity planning (the ability for the activities of the business or organisation to continue even under duress), security management (the ability to maintain physical, financial, and informational integrity under duress), and financial management (the ability call on necessary resources during duress).
Risk is ultimately and finally a cost. A certain amount of risk will be realised as loss in any period. Thus, at year-end, risk is a cost to a business or organisation. This is a cost that in many cases is not even accounted for, and in other cases it isn't adequately accounted for. By understanding risk as a cost, it can be accommodated as a manageable expense. The process of converting undefined and unrealised exposure liability into accountable cost that can be budgeted is the purpose of SRM practice. By embracing risk management rather than neglecting it, risk becomes resiliency, the business or organisation becomes more robust and prepared, and the unknown becomes a tangible operational and financial factor.