Risk Management

First determine what risks are present, then determine the best way to manage the risk.

Divide the risks you face into four catagories:
1. Likely to happen with low impact (small consequence if it does happen),
2. Likely to happen with high impact (calamity if it does happen),
3. Unlikely to happen with a low impact,
4. Unlikely to happen with a high impact.

The four main ways to deal with risks are avoidance (eliminate the risk), reduction (reduce the risk), sharing (insurance) and retention (accept and budget).

Decide what to do with each risk. If the situation is likely to happen with low severity, the risk should be reduced. If it is likely to happen and it would be a very severe if it did happen, you need to find a way to avoid the risk or stop it from happening. If it is unlikely to happen and the consequences would be negligible then you would probably retain the risk, just accept it if if does happen. If it is unlikely to happen and the consequences would be severe, you might share the risk by purchasing insurance.

  • "Remember your dreams and fight for them. You must know what you want from life." - Paul Coelho

  • "Failing to plan is planning to fail." - Alan Lakein Lakein

  • "Never underestimate the power of dreams and the influence of the human spirit." - Wilma Rudolph

  • "Before beginning, plan carefully." - Marcus Cicero