The concept of risk management

Abstract

Relatively few British companies have had to withstand earthquakes, floods, building collapse or the kidnapping of top executives; but all are fighting against risks whose effects can be equally devastating. Some of these have been identified and measured. The country's annual accident bill totals a staggering £2.5 billion, employee theft eats up £650 million of industry's assets each year, and fire damage in 1979 amounted to more than £320 million. This figure does not include consequential loss, or loss of exports and production. But there are thousands of other risks faced by industry each day — some so familiar that managers do not even recognise the potential threat they pose. Recognising the need for a comprehensive strategy to deal with them, American industry is rapidly developing risk management as its newest and most powerful managerial discipline.

Citation

Tye, J. (1980), "The concept of risk management", Education + Training, Vol. 22 No. 4, pp. 127-128. https://doi.org/10.1108/eb016713