4. Disaster, risk or hazard?

Which of the ‘disasters’ could have been averted?

• the gas crisis in Victoria
  
• the stage four water restrictions
  
• the blue green algae water crisis in New South Wales
  
• the 'I love you' virus.
  

Could good planning and proactive risk management plans have changed the outcomes for any of these events? Why?

We are often positive in our planning. We do not like to predict that negative things could happen. We do not want to be seen as ‘negative’. A risk management plan can also help minimise the threat of possible negligence claims, insurance, legal and other such disputes that commonly arise after major disruptions or disasters occur.

5. Turning a risk into an opportunity

Risk management is often talked about in terms of ‘perception’. One person’s disaster is another person’s opportunity. When a fire occurs and the smoke clears – the furniture seller, IT supplier and building refurbisher will all be there waiting ready to help you.

Risk management is also about being able to capitalise on opportunities that can arise as a result of well managed risks.

6. When can risk management be used?

The following jobs or tasks are examples of risk management:

• feasibility studies, eg an environmental study into the building of a road
  
• assessment management and resource planning, eg managing a superannuation fund
  
• legislative management
  
• pubic risk and general liability
  
• workplace safety
  
• employment and security arrangements
  
• project, contract and credit management
  
• contingency, disaster and emergency planning
  
• management, statutory and financial reporting
  
• information technology and communications management
  
• marketing and product development.