Manageable risks are risks that can be identified, assessed, and effectively managed or mitigated by individuals, organizations, or institutions. These risks are typically within the control or influence of the risk owner, and appropriate measures can be taken to reduce their potential negative impact.

Key Matters and Considerations in ESG

Here are some key points about manageable risk:

– Risk Management: Manageable risks are an essential aspect of risk management. They are risks that can be actively monitored, analyzed, and addressed through various risk management strategies and techniques.

– Identifiable and Measurable: Manageable risks are those that can be identified and quantified. They are specific and measurable, allowing organizations to assess their potential impact and likelihood of occurrence.

– Proactive Approach: Managing manageable risks involves taking a proactive approach. Organizations develop risk management frameworks and processes to identify, assess, and control risks before they materialize or escalate into significant issues.

– Risk Mitigation: Once manageable risks are identified, organizations implement risk mitigation strategies to reduce their potential negative impact. This may involve implementing control measures, adopting best practices, developing contingency plans, or transferring the risk through insurance or other means.

– Internal Controls: Manageable risks are often addressed through the implementation of internal controls. Internal control systems help organizations identify, monitor, and manage risks by establishing procedures, policies, and protocols that mitigate the likelihood and impact of adverse events.

– Continuous Monitoring: Managing manageable risks is an ongoing process. Organizations continuously monitor and review their risk landscape to identify emerging risks and reassess existing ones. This allows for timely adjustments and improvements to risk management strategies.

– Risk Appetite: Organizations set their risk appetite, which represents the level of risk they are willing to accept in pursuit of their objectives. Manageable risks align with the organization’s risk appetite and can be effectively managed within the defined risk tolerance levels.

– Collaboration and Communication: Managing manageable risks often involves collaboration and communication among stakeholders. This includes sharing information, engaging relevant parties, and coordinating efforts to address and mitigate risks effectively.

By identifying and managing manageable risks, organizations can enhance their ability to navigate uncertainties, protect their interests, and improve overall performance. Effective risk management enables organizations to make informed decisions, allocate resources efficiently, and maintain a resilient and sustainable operating environment.