Running a business comes with many types of risk. They can have negative impact, positive impact, or both. Some of these potential hazards can destroy a business or cause serious damage that is costly and time-consuming to repair. Other risks may represent opportunities.
Companies invest time and money in business risk management but often treat it as a compliance issue with rules and regulations for employees to follow. This approach is limited: rules-based business risk management alone cannot diminish either the likelihood or the impact of a disaster and can also lessen your ability to seize business opportunities that may involve some degree of risk.