ABSTRACT
Some risks are worth taking, others are not. We identify the hazard – the possibility that harm or distress will occur – and assess the risk – the chances of the hazard playing out to our disadvantage. All along, we balance risk and reward. Managing risk goes somewhat further than simply assessing the
risk/reward ratio. It acknowledges the possibility of a situation where you forego the reward because of the risk. Or where, by removing the hazard, you remove, or at least significantly reduce, the risk, as with stopping smoking for instance. Naturally, there is the middle course whereby, having formed a view about a risk, the likelihood of it occurring, and its potential impact, you may be able to reduce it to an acceptable level. Many of the same principles apply in the business world. Risk management has assumed an ever greater importance over the
past few years with the growing feeling of unease and concomitant risk of collateral damage from urban terrorism. But how many facilities managers have included risks from a terrorist’s source in their workplace risk assessments? Health and safety legislation, contrary to popular belief, does include security risks.
