Risk can be good. Without risk, there would be no reward. The purpose of risk management is not to eliminate risk, but to understand it so that you can take advantage of the upside and minimize the downside. This requires clarity on what risks you are prepared to take, how much, and that you have processes in place to manage these risks.
Managing risk - or not?
Risk management can be defined as the culture, processes and structures directed towards realising opportunities whilst managing adverse effects. An explanation for the increased interest in risk managament is the opportunity to apply new thinking and tools on the “new risk reality”. We believe risk management should be an integral part of good business practice at both a strategic and operational level.
The core of risk management is to assess the uncertainty of the future in order to make the best possible decision today. All risk management and all decision-making deal with this general issue. The benefits of risk management are the benefits of better decisions; fewer surprises, improved planning, performance and effectiveness and improved relationships with stakeholders.
- The new risk reality
- Advances in risk management thinking and tools
- Better decisions, but not always better outcomes
DNV work
Risk management is a key component in most of the work DNV does for our customers. What varies is the scope of our work. The work can be split into three areas:
- Risk/issue analysis. The subject can vary from mechanical integrity, vulnerabilities in ICT systems or food safety
- Risk management systems - design, evalution and improvement. This includes the policy, process, structure, tools etc. of effective risk management
- Risk management – implementation. A key challenge in risk management is the change of heart, minds and ultimately actions of the risk owners.
Read more about some of DNV's risk management services here or browse through 'Our services' to find how we can help you.
Risk management vs. managing risk
- is there a difference?
Risk - a word from ancient Greece
In debating and analysing the aspect of risk, have you ever wondered about the origin of the term 'risk'?
A wake-up call from Texas City
Two years ago, the US refining industry suffered its worst accident in 20 years at Texas City, causing 15 fatalities and injuring 170 persons. In relation to this, two major investigations recently produced a number of valuable recommendations to the refining industry. However, DNV is not fully convinced and suggests all oil and gas industries should go beyond these reports in order to achieve a major improvement in business and safety performance.
Protecting world famous art
On a bright August Sunday in 2004, two men walked in with guns and came out minutes later with Edvard Munch’s famous artworks; “The Scream” and “Madonna”. Following the robbery, DNV conducted a high-profile security analysis of the Munch museum in Oslo, Norway, focussing on the highest risks to the priceless artworks.