by Stephen McPhie, CA
Partner, RSD Solutions Inc.
Most of the focus in discussions on risk management is around preventing losses. However, as important, or perhaps more so, is profit opportunities afforded by risk. The phrase “risk and reward” is familiar to us all. Businesses make profits by adopting risks of some sort, so the right sorts of risks should be taken on or maintained. Risk management programs should not seek to eliminate or reduce such risks unduly. Rather they should seek to identify and quantify and enhance risk-taking opportunities. It is possible that some risks should be increased.
The key words above are “right sorts” and “some risks”. Nobody should go increasing as many risks as possible. But do you have enough risk?
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