Organisations often acknowledge that assessing risk is important, but can approach risk assessment exercises in a narrow fashion.

Common mistakes include failing to involve broader sections of employees who often have greater knowledge of risks than senior managers; limiting a view of risk to insurance-related exposures; and neglecting external risks.

Critical questions you need to consider include:

• Do you have a balanced, objective view of risk?

• Are dominant personalities within your organisation skewing your perspective?

• Have you created a Risk Register - a list of your priority risks to be managed?

• Do you have a common understanding of what risk is - evaluating the importance of risk in terms of its impact on your balance sheet?

• Do you have a robust analysis of the frequency and severity of different risks?