Before you start your vehicle in the morning, you first check if the fuel is enough, tires have enough air pressure, you change the oil, and you make sure signals are properly functioning and so on. All you do so to make sure you can reach your destination on time and without any issue or incident. While you are on your way, driving very carefully and you are so sure that your car cannot cause you any delays as you have properly checked all necessary things. But all of a sudden your car tire busts or a vehicle from another road comes and hit your vehicle while it is not even your fault. You can never prevent some incidents in your daily life. All you can do is to have some precautions in order to reduce the impact of such events. For instance, in case of tire failure, you can have an extra tire or a plan to quickly change the tire to save your time. Likewise, in case of an accident, what can protect you from injury is an airbag. Moreover, you have some emergency numbers to reach out your family members or hospital for help.
There is no way that you can prevent these incidents from happening. Similarly, in the business world, some bad incidents or events can occur without any signal or prediction. The risk is not just an uncertain or unexpected event, the risk is when you don’t have a countermeasure to mitigate the impact of such incident. Risks are uncertain situations that can never be prevented, but instead, the chances of risk occurrence can be reduced to the point where the impact of such risk will be bearable. If a risk occurs, it can leave a huge negative impact on your business goodwill and image. For example, you have an e-commerce website and a lot of loyal customers purchase your product, one day it dawned on them that all their personal data and credentials have been compromised from your website or business platform. Would they like to avail your services ever again? Even though the next time you are doing your best to make sure the security of your website is good enough but your customer might never return to you. Once they lose their trust, it is nearly impossible to gain it back. Some risks can bankrupt your entire business if not be taken into consideration. Thus, we must learn to control such risks before they leave any huge impact.