| In both the construction of sound business case | | | | In order to be able to control and contain risk it is |
| proposals and other areas of service management | | | | necessary to fully understand it. Risk Analysis is |
| risk will need to be managed. Risk may be defined as | | | | concerned with gathering information about exposure |
| follows: | | | | to risk so that the organisation can make decisions |
| "Risk is the uncertainty of outcome, whether positive | | | | and manage risk appropriately. |
| opportunity or negative threat " | | | | Each risk needs to be identified. It should have an |
| Risk is usually posed as something to be avoided | | | | owner who is responsible for the management of |
| because it represents danger. While this is true few | | | | that risk. Each risk needs to be evaluated and |
| opportunities exist which are truly devoid of risk. | | | | dependent on the likely outcome and the |
| Failure to take the opportunity may in itself present | | | | consequential damage each risk should have agreed |
| risks. Decisions about risk need to be managed so | | | | tolerance levels set. If that level is breached then |
| that the potential benefits are worth more to the | | | | actions need to be taken. |
| organisation than it costs to address the risks. | | | | |