What is Risk?
"Risk" can be defined over a range of nuances, but, for the practical purposes of risk management, the following Merriam Webster definition fits most cases: "the possibility that something bad or unpleasant (such as an injury or a loss) will happen." In an institution like a university such possibilities are of particular practical concern in up to 6 main areas:
- Health and safety;
- Operations (i.e. if the risk potentially threatens the actual operations or procedures of a department);
- Finance;
- Compliance with law, statutes, and regulations;
- Reputation (i.e. if the risk has potential to harm the reputation of a department or the institution);
- Strategic goals (if the risk could affect a department’s or the institution’s overall goals, development, or even survival).
A particular risk may have potential consequences in any or all of these dimensions.