Risk is the potential for damage or loss to an asset or assets. It is also the likelihood that a specific vulnerability to the asset will be exploited by a particular threat.
Risk cannot be eliminated; therefore it has to be managed.
Risk Management is the process of selecting and implementing countermeasures to achieve an acceptable level of risk at an acceptable cost.
The level of acceptable risk is based on the value the owner places on the assets.
Not all assets are in need of protection, or at least the same level of protection, therefore it becomes essential to value the assets based on the consequences of their loss to your
organization.
Investing into the Asia region can bring enormous benefits to Western companies, but at the same time exposure to risks often not fully considered such as espionage, supply chain disruption, environmental disasters,
and even differences with local management cultures.
Many such challenges are also regularly faced within Western
countries, yet sufficient infrastructure exists for most organizations to be
able to absorb the problems into their routines. Investing into developing
nations is quite different and in order to offset these threats a Risk
Assessment, preferably prior to investing, is always recommended.
Equally important is how your project will operate once the
site is established.
Will your partners flout rules or cut corners to achieve
targets and expose the organization to unnecessary risks? Regular monitoring of
not just the core unit but its partners is essential to maintain the goodwill of
the company.
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