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Risky business Booklet no.13

A club guide to risk management.

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Risky Business coverWhat is risk management?

The Australian/New Zealand Standard for Risk Management (AS/NZS 4360) defines risk management as:

“The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects.”

What is risk?

The Australian/New Zealand Standard for Risk Management (AS/NZS 4360) defines risk as:

“The chance of something happening that will have an impact upon objectives. It is measured in terms of likelihood and consequences.”

 

Organisations must accept that it is inevitable that it will encounter risk, the aim of ‘Risk management’ is for the board and the Chief Executive Officer to ensure that the risks faced do not result in significant loss or harm to the organisation.

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