Enterprise Risk Management

What is Enterprise Risk Management?

Enterprise Risk Management in its basic form is all about common sense and managing risk is something which all of us do on a continuous basis, albeit sometimes in a subconscious manner.

Every time we make a decision we create a risk:

  • Did we make a right or wrong decision, and
  • Can we manage the outcomes of that decision?

Enterprise Risk Management is an integral part of good management practice. It is an ongoing process consisting of steps that enable managers to improve outcomes by identifying and analysing a wide range of issues and by improvement in decision making.

Risk is the possibility that an event will occur and adversely affect the achievement of the University’s objectives. Risk is measured in terms of consequences and likelihood.

The greatest risk is to take no risk at all. The challenge is to manage risk so as to ensure a successful outcome.

What are the techniques to manage risks?

Once risks have been identified and assessed, all techniques to manage risks fall into one or more of these four major categories:

  • Risk Avoidance
    Includes not performing an activity that could carry risk. Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting the risk may have allowed.
  • Risk Reduction
    When risk cannot be avoided, the effect of loss can be minimized in terms of frequency and severity.
  • Risk Retention
    It may be determined that it is more practical to retain a risk even though other methods of handling the risk are available. All risks that are not avoided or transferred are retained by default.
  • Risk Transfer
    Means causing another party to accept the risk, typically by contract. Insurance is one type of risk transfer.

Contact details:
Ms Portia N Mokoena
Risk Specialist
ORT 10-13
Tel: 012 429 2960

Mr Kgosi Kgosiemang
Risk Specialist
ORT 10-11
Tel: 012 429 3976

Muckleneuk campus
ORT Building 10-14
Tel: 012 429 6831
Fax: 012 429 3405

Postal address:
P O Box 392

Last modified: Sun Oct 09 08:56:12 SAST 2016