Name: April Ricah Mae E. Sasam
Section: B2
Date: Sept. 8, 2023
Subject: HTM101- Risk Management as Applied to Safety, Security and Sanitation
Why is risk management considered to be a proactive management tool in managing a
business?
Risk management is considered to be a proactive management tool in managing a business
because it helps companies prepare for potential problems before they happen. Businesses use
risk management to identify and assess things that could possibly go wrong, like losing money or
facing legal issues. Then they come up with plans to stop these bad things from happening. For
example, if a business sees that a supplier might suddenly raise prices, they can plan to have
backup suppliers or negotiate better deals. This way they can be ready for what problems to
come because when businesses don't manage risks, they can face unexpected problems that may
be costly to fix.
Risk management also makes businesses stronger. When a company knows its risks and how to
handle them, it is more likely to be successful. It allows the company to make better decisions,
save money, and even find new opportunities. It also provides peace of mind to the people
running the business and the ones investing in it.
Overall, risk management is about having a proactive mindset when you venture into the
business world because in this industry everything is unpredictable, so you need to be smart,
prepared, and always on the lookout for potential problems in every decision that you make.
Having managed the risks makes your businesses strive and be successful.
