Risk Management:
– Proper risk management will reduce not only the likelihood of an event occurring, but also the magnitude of its impact.
– Risk Management Systems are designed to do more than just identify the risk it must also be able to quantify the risk and predict the impact of the risk on the project.
– If risk management is set up as a continuous, disciplined process of problem identification and resolution, then the system will easily supplement other systems, including: organization, planning and budgeting, and cost control.

Proper risk management implies:

• Establish a business plan / production process that includes, from the start, appropriate risk control measures;
• Periodic risk assessment that is accepted in ongoing processes and changes in risk mitigation measures, when appropriate;
• Transferring risk to other entities (eg, Insurance Company);
• Avoiding total risk (by stopping a high risk process totally).