As risk management consultants, we often hear people use the terms Risk, Risk Management, Risk Assessment and Risk Analysis to describe a wide variety of things. But a misunderstanding about the difference between these tasks and how they work together can cause confusion.
While there are some areas where these different tasks overlap in the work they define, there are differences that are worth noting.
Risk management is the systematic application of management policies, procedures and practices to the tasks of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risk.
A risk assessment involves evaluating existing security and controls and assessing their adequacy relative to the potential threats of the organisation.
A risk analysis involves identifying the most probable threats to an organisation and analysing the related vulnerabilities of the organisation to these threats.
So as you can see whilst subtle, the differences between the three areas of identifying and managing risk are worth understanding. If you are still confused about any of these points or need some extra help in implementing these tasks for your business, get in touch with our qualified risk consultants to book your FREE session to discuss the best approach to managing risk for your business.