Crises are always a possibility in any organisation, in any sector. Risk, crisis and resilience management is a strategic way of conceptualising potential organisational risks and making your organisation more resilient for the future.
We’ve broken down the basics of risk, crisis and resilience management so you can see first-hand why it’s become such a priority for organisations everywhere, and how you can use it to start planning for the future.
What exactly is risk, crisis and resilience management?
Risk, crisis and resilience management is exactly that – the management of risk and crises within an organisational context.
How can you manage risk? Isn’t that the very nature of risk – that it’s unpredictable?
Not quite. Risk management is about carefully identifying and evaluating risks within a specific organisational context, and developing with a plan to mitigate the potential negative impacts of that risk should it occur and capitalise on its opportunities.
With risk, crisis and resilience management, it’s all about being prepared. Enhancing organisational resilience to be better protected against adverse threats and able to take advantage of unforeseen opportunities.
Study a part-time, online MSc Risk, Crisis and Resilience Management with the University of Portsmouth, without taking a career break:
Fields that commonly use risk, crisis and resilience management
The world is a risky place. There’s no getting around that. For that reason, risk, crisis and resilience management is something that all organisations do, either explicitly or implicitly.
Whatever sector you want to enter, it’s going to feature an element of risk, crisis and resilience management.
Top types of risk faced by businesses
There’s a potential for risk in just about every facet of a business, Some of the main risk categories are:
- Operational – Operational risk refers to risk surrounding the way a business functions. This can include damage to key equipment, breakdown in supply chains or IT malfunctions.
- Strategic – Strategic risk impacts how a business strategises. Examples of this might be a new competitor, or a decrease in customer demand.
- Financial – Financial risk primarily encompasses cash flow and how it’s affected. Fluctuating interest rates and customers not paying their bills are examples of financial risks.
- Compliance – Finally, compliance risks involve how your business follows laws and regulations. Some examples of compliance risks include tax or government-mandated labelling changes.
Why should I study risk, crisis and resilience management?
It's impossible to eliminate risk or prevent all crises, but the best way organisations can ensure they at least have contingency measures in place is by identifying potential hurdles and preparing for them. And the best way to do so is by employing someone with the right knowledge and experience in the field.
That’s why studying risk, crisis and resilience management can be so beneficial – specialist courses have the ability to teach you the ins and outs of identifying risk, giving you real practice with commonly-used software and tools. From there, you can use these skills to both prevent against those risks and prepare comprehensive plans for if/when risks and crises strikes.
And because this is such a sought-after skill set, you’ll be able to translate this experience and knowledge into a huge range of industries.
Thinking about investing in a future in risk, crisis and resilience management? Read more about our MSc in Risk, Crisis and Resilience Management and how it can up your career prospects: