What is “Risk”?
Risk is the conjoining of (i) an event that is not desired, and (ii) uncertainty.
This comports with common English usage and everyday common sense.
We help organizations
- identify, assess and prioritize risks, which begins with (i) identifying risks and (ii) assessing the probabilities of their occurrence and the magnitude of their impacts. In connection with the assessment of risk, a third concept, “velocity of risk”, has emerged and is beginning to be used by thinkers and practitioners in the field.
- make plans to eliminate or mitigate them, and
- implement those plans.
Perhaps most valuable of all, we can help a company create an entire structure and system for risk management, beginning at the board level and extending throughout the company.
What is a “crisis”?
The word “crisis” to some extent takes its meaning from the context in which it is used. If you think you are in a crisis, you probably are. Unfortunately, you may be in a crisis situation and not know it.
The Chinese word for “crisis”, wēijī, is instructive. It is comprised of two Chinese characters: one (wēi) signifying danger, and the other (jīhuì) denoting “change point”. We think this is a useful — and thought-provoking — way to think about “crisis”.
Crisis management is commonly associated with an event that is already happening, and often means, in effect, “crisis response”, implying that the matter is to some extent out of the control of the interested person or organization.
The term “crisis management” is also sometimes used to mean crisis communications, but it means more than that, it means doing all those things that can or should be done in connection with the matter. Certainly, communications are often of the greatest importance in a crisis.
We are not a “crisis management” firm, but, as part of our risk management services, we assist clients in setting up crisis and incident response procedures. Also, we know crisis management specialists and can help you choose the right team.