Any organisation faces risks. Whether it be internal risks emanating from breach of controls or safeguarding of assets, or external risks from competitor actions, changes in legislation or the environment. It is not possible to pass all the effects of risks to third parties (like insurers). It is therefore important not only to identify the risks and their potential impact on the organisation, but also develop contingency plans to counter the negative impact they may have.

Risk management is the identification, evaluation, and prioritisation of risks.

An investment in shares listed on a stock exchange carries certain risks. Similarly, an investment in property carries risks. One must exercise caution and care when investing and continue to monitor the investment and broader environment to manage risk. Some risk elements can be managed better than others: through proper maintenance of your car, the risk of a breakdown can be minimized. Yet if a storm sweeps the vehicle away, the maintenance could not prevent it. In this case it would be best to avoid the risk by not driving in the storm.

The impact of load shedding on risk must not be under estimated. If the business is unable to operate during load shedding, it will have an impact on its sustainability. Where security cameras, access controls and alarms are installed, their functionality will be affected by load shedding. Even where solar panels have been installed as risk mitigation, there will be an adverse impact if load shedding occurs at night. If back-up batteries are installed, it could mitigate risk only if the recharging thereof can be accomplished during period where power supply is available.