As a prerequisite to the implementation of effective risk management
initiatives, it is essential that a professional practice is able to identify
and appreciate all the professional risks that arise in the conduct of daily
business operation.
This can include not only the exposure to negligence claims from clients of
the business, or from those third parties to whom the law may impose an
obligation or responsibility, but also from employees and those who supply you
with services which are integral to your practice.
Once identified, analysis and categorisation of those risks can then follow
to enable you to appreciate fully the levels, or grades, of risk in key areas of
activity.
The results can then be utilised to consider whether the reward in any
particular aspect of professional endeavour is actually worth the risk and
whether investment in risk reduction in the future would be worthwhile. Similar
assessments can be employed to enhance the decision making process when
considering new ventures and opportunities, as well as assisting in the general
process of business planning and development.
Risk Identification
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