19/06/2022
What is risk management versus risk control?
Risk controls and risk management are not separate concepts. Rather, risk management refers to the full process of identifying, preventing, and mitigating risks, while risk control is one of the tools under that risk management umbrella. Risk management is analyzing and attending to risks; risk control is the strategy by which you attempt to prevent it. The term “risk control” is also used in workplace health and safety procedures, as well as in data protection. In both fields, it refers to the process of risk analysis and identification and of reducing or eliminating risks as much as possible. In an ideal world your company would avoid risk entirely; but risk controls can also focus on preventing or reducing potential loss, and creating contingency plans within your business strategy when issues inevitably arise. Risk control strategy will differ from one company to the next depending on your needs and the policies you already have in place. Examples of controls can include testing, regular internal audits or inspections, and even your training program. Your risk assessment will determine which risks are present for your company and what controls should be created to protect your assets.
