Richard Martin Advises that Prudent Risk Management is Always Needed

Posted: May 11, 2010 in On Target
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BP’s Gulf of Mexico oil well disaster highlights once more the fact that proper risk management is always needed, particularly in risky or dangerous undertakings.

The first part of the process is to analyze all activities and potential situations to determine what and how things can go wrong. The second part requires the identification and implementation of known methods of prevention to eliminate or reduce those risks. Robust contingency plans are also required to implement emergency measures that will attenuate or eliminate the causes of risks as they materialize, as well as to mitigate their most damaging effects.

Humans undertake many risky activities and it is completely impossible to eliminate all risks. However, prudent risk management can provide greater safety and security, and limit costs and damages when a disaster does occur.

© 2010 Richard Martin

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