The risks of risk management

Risk Management has become embedded in the practices of many private sector and public sector corporations. In its original creation it was depicted as a kind of defensive shield for entire organizations. If your organization had a well-developed risk management system, it conveyed a sense of security and safety. The presence of such systems was seen as the ultimate safeguard against corporate failure and disasters. However, it is contended here that the embedded nature of risk management systems raises important questions surrounding their effectiveness. Specifically, there is an issue over the bureaucratization of risk management. This may result in the risk management becoming ceremonial with little instrumental value. Beyond this phenomenon there are significant challenges which the practice of risk management may address. One major issue is the matter of climate change. This is a contested issue with major implications for all forms of organizations. This topic is addressed in this chapter. Most recently, the Covid-19 global pandemic has challenged many government organizations, not just healthcare ones. There are trade-offs between the protection of life and the protection of economic activities. This is a demanding application of risk management methodologies. The recurrence of pandemics is widely forecast. This discussion reasserts the merits of risk management in the face of fundamental uncertainties which challenge government agencies and society in general.