Risk management is a process which provides assurance that:
- objectives are more likely to be achieved;
- damaging things will not happen or are less likely to happen;
- beneficially things will be or are more likely to be achieved.
It is not a process for avoiding risk. The aim of risk management is not to eliminate risk, rather to manage the risks involved in all University activities to maximise opportunities and minimise adverse effects.
Note: risk management is not the management of insurable risks. Insurance is an important way of transferring risk but most risks will be managed by other means.
Good risk management provides upward assurance from business activities and administrative functions, from department to faculties, to the senior management team and ultimately to the governing body.
The potential benefits from risk management are :
- supporting strategic and business planning;
- supporting effective use of resources;
- promoting continuous improvement;
- fewer shocks and unwelcome surprises;
- quick grasp of new opportunities;
- enhancing communication between Schools and Departments;
- reassuring stakeholders;
- helping focus internal audit programme;