Risk Management 101 for IT Professionals Essential Concepts - Why Do We Need Risk Management

The video discusses the importance of risk management in organizations, emphasizing proactive management to prevent risks from becoming issues. It highlights the benefits of a risk-aware culture, effective resource use, and legal compliance. The video also stresses the role of risk in business decision-making and concludes with a quote on the necessity of risk management over crisis management.

Why is it important to have a risk management framework in place?

• To react to risks as they occur

• To proactively manage and reduce risks

• To increase the number of surprises

• To avoid any form of management

What is one of the benefits of proactive risk management?

• It increases the number of issues

• It helps in effectively using resources

• It builds a risk-averse culture

• It decreases the likelihood of success

How does a risk-aware culture benefit an organization?

• By encouraging secrecy about risks

• By reducing the need for risk management

• By increasing the number of crises

• By promoting open communication about risks

What role does risk management play in business decision-making?

• It is a part of daily business decisions

• It is only for legal compliance

• It is irrelevant to decision-making

• It is only used in crisis situations

According to James Lamb, what is the alternative to risk management?

• Crisis management

• No management

• Proactive management

• Resource management