Meaning of Risk
Organisations exist for a purpose. Whereas the private sector strives to enhance shareholder value, the Government and Not for Profit organizations have a main purpose of delivering service or other benefits in public interest. Achievement of organisational objectives is clouded by uncertainties that both poses threats to and offers opportunity for increasing success. Businesses operate in dynamic environment where change is a constant. Risks arise on account of internal or external factors and circumstances. These circumstances need to be assessed with reference to the organisation's objective.
In a larger sense, risks are those uncertainties of outcome, whether an opportunity or threat, arising out of actions and events. While looking at them narrowly, risks are those uncertainties which impede the achievement of the objective.
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