--- title: How to Identify, Assess, and Analyze Risks in Your Business description: Learn how to identify, assess, and analyze risks in your business. Get practical tips on using risk management as a competitive advantage. Understand the importance of creating a common risk language for your organization. image: https://varri.com/hubfs/johnny-kollin-sbc-risk-workshop.jpg --- [Skip to the main content.](https://varri.com/insights/how-to-identify-assess-and-analyze-risks-in-your-business#main-content) [![Várri Consultancy primary logo (negative transparent)](https://varri.com/hs-fs/hubfs/logos/Varri-primary-logo-neg-trans-200w.png?width=200&height=130&name=Varri-primary-logo-neg-trans-200w.png "Várri Consultancy primary logo (negative transparent)")](https://varri.com) [![Várri Consultancy primary logo (transparent)](https://varri.com/hs-fs/hubfs/logos/Varri-primary-logo-trans-200w.png?width=200&height=130&name=Varri-primary-logo-trans-200w.png "Várri Consultancy primary logo (transparent)")](https://varri.com) - About Us - [Awards](https://varri.com/about-us/awards) - [History & Milestones](https://varri.com/about-us/milestones) - [Team](https://varri.com/team) - [About Our Founder](https://varri.com/team/johnny-kollin) - [Media Centre](https://varri.com/about-us/media) - [News and Announcements](https://varri.com/media/news-announcements) - [Accessibility](https://varri.com/accessibility) - [Transparency Statement](https://varri.com/transparency-statement) - [Insights](https://varri.com/insights) - [Careers](https://varri.com/careers) - [Home](https://varri.com/careers) - [Hear from Várri Alumni](https://varri.com/careers/testimonials) - [Rewards and Benefits](https://varri.com/careers/rewards-and-benefits) - [Jobs](https://varri.com/careers/jobs) - Security - [Vulnerability Disclosure Policy](https://varri.com/vulnerability-disclosure-policy) - [Acknowledgments](https://varri.com/security/security-acknowledgments) - [FAQ](https://varri.com/faq) - [Contact](https://varri.com/contact-us) Search Toggle Menu Search Toggle Menu - About Us - [Awards](https://varri.com/about-us/awards) - [History & Milestones](https://varri.com/about-us/milestones) - [Team](https://varri.com/team) - [About Our Founder](https://varri.com/team/johnny-kollin) - [Media Centre](https://varri.com/about-us/media) - [News and Announcements](https://varri.com/media/news-announcements) - [Accessibility](https://varri.com/accessibility) - [Transparency Statement](https://varri.com/transparency-statement) - [Insights](https://varri.com/insights) - [Careers](https://varri.com/careers) - [Home](https://varri.com/careers) - [Hear from Várri Alumni](https://varri.com/careers/testimonials) - [Rewards and Benefits](https://varri.com/careers/rewards-and-benefits) - [Jobs](https://varri.com/careers/jobs) - Security - [Vulnerability Disclosure Policy](https://varri.com/vulnerability-disclosure-policy) - [Acknowledgments](https://varri.com/security/security-acknowledgments) - [FAQ](https://varri.com/faq) - [Contact](https://varri.com/contact-us) [Facebook](https://www.facebook.com/VarriConsultancy) [Instagram](https://www.instagram.com/varriconsultancy/) [Linkedin](https://www.linkedin.com/company/varri/) [X](https://twitter.com/varriuae) [YouTube](https://www.youtube.com/@varriconsultancy) [Tiktok](https://www.tiktok.com/@varriconsultancy) [Pinterest](https://www.pinterest.com/VarriConsultancy/) 1 min read # How to Identify, Assess, and Analyze Risks in Your Business [![Picture of Johnny Kollin](https://app.hubspot.com/settings/avatar/66c1ed15fd0cc9c63bedaf0c7d2a6dc9) Johnny Kollin](https://varri.com/insights/author/johnny-kollin) : 3 March 2021, 20:12:00 GST [Risk](https://varri.com/insights/tag/risk) [SME](https://varri.com/insights/tag/sme) [Swedish Business Council](https://varri.com/insights/tag/swedish-business-council) [Training](https://varri.com/insights/tag/training) [Workshop](https://varri.com/insights/tag/workshop) ![How to Identify, Assess, and Analyze Risks in Your Business](https://varri.com/hubfs/johnny-kollin-sbc-risk-workshop.jpg) Johnny Kollin led an interactive risk workshop at a [business breakfast organised by the Swedish Business Council UAE](https://www.sbcuae.se/events/2021/4/5/analyze-risk) on 26 April 2021. The workshop focused on the essentials of risk management for small and medium enterprises. Kollin also shared practical tips on how companies can use risk management as a competitive advantage to increase the chance of succeeding with their business strategies. Business owners and executives from the council’s Small and Medium Enterprise Networking Group (SMENG) attended the event. ![Johnny Kollin speaks at a risk workshop audience.](https://varri.com/hs-fs/hubfs/johnny-kollin-sbc-risk-workshop.jpg?width=740&height=493&name=johnny-kollin-sbc-risk-workshop.jpg) Johnny Kollin leads a risk workshop at a business breakfast seminar for SME founders and senior management organised by the Swedish Business Council UAE. ### Creating a common Risk Language To create a risk-aware culture, it is essential to ensure everyone in the organisation understands the terminology used. It is easy to assume everyone means the same thing when using words like risk, risk appetite, and risk management. However, that is not necessarily the case. The fact that the word “risk” is one we use in everyday life further increases the importance of ensuring everyone uses the terms in the same way in an organisation. To demonstrate his point, Kollin asked the participants to select their preferred definition of risk from a list of four alternatives: - [Risk is “the uncertainty of outcome, whether positive opportunity or negative threat, of actions and events.”](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/191513/The_Orange_Book.pdf) - [“Risk is the combination of the probability of an event and its consequence. Consequences can range from positive to negative.”](https://www.theirm.org/media/4709/arms_2002_irm.pdf) - [Risk is “the effect of uncertainty on objectives. The effect may be positive, negative or a deviation from the expected.”](https://www.iso.org/standard/65694.html) - Risk is “an event with the ability to impact (inhibit, enhance, or cause doubt about) the effectiveness of the core processes of an organisation.” (Hopkin, P, 2017. Fundamentals of Risk Management.) The chart below shows the combined ranking of the four options based on the 12 votes. Overall, the most preferred risk definition was that provided by The Crown in “The Orange Book - Management of Risk - Principles and Concept”. However, as you can see in the chart, their opinions varied greatly. ![Graph showing participants' votes on their most preferred risk definition.](https://varri.com/hs-fs/hubfs/Imported_Blog_Media/risk-definition-participants-ranking.png?width=2500&height=1484&name=risk-definition-participants-ranking.png) SME owners and senior executives who participated in the risk workshop had varying views of the best definition of risk. Source: Várri Consultancy, 2021. - [Tweet](https://twitter.com/share) [![What Is the Most Common Reason Behind Startup Failures?](https://varri.com/hubfs/company-assets/blog/varri-why-startups-fail.png)](https://varri.com/insights/what-is-the-most-common-reason-behind-startup-failures) #### [What Is the Most Common Reason Behind Startup Failures?](https://varri.com/insights/what-is-the-most-common-reason-behind-startup-failures) [![Picture of Johnny Kollin](https://app.hubspot.com/settings/avatar/66c1ed15fd0cc9c63bedaf0c7d2a6dc9) Johnny Kollin](https://varri.com/insights/author/johnny-kollin) : 16 January 2025, 12:29:28 GST Effective risk management is crucial to prevent startup failures. Learn how poor risk management contributes to common startup pitfalls. [Risk](https://varri.com/insights/tag/risk) [Startups](https://varri.com/insights/tag/startups) [Entrepreneurship](https://varri.com/insights/tag/entrepreneurship) [Operational Risk](https://varri.com/insights/tag/operational-risk) [Liquidity Risk](https://varri.com/insights/tag/liquidity-risk) [Read More](https://varri.com/insights/what-is-the-most-common-reason-behind-startup-failures) [![Risk Advisory in the Renewable Energy Sector](https://varri.com/hubfs/Imported_Blog_Media/client-review-daniel-pedroso-three-eight-six-Oct-02-2023-01-25-05-7103-PM.png)](https://varri.com/insights/risk-advisory-in-the-renewable-energy-sector) #### [Risk Advisory in the Renewable Energy Sector](https://varri.com/insights/risk-advisory-in-the-renewable-energy-sector) [![Picture of Johnny Kollin](https://app.hubspot.com/settings/avatar/66c1ed15fd0cc9c63bedaf0c7d2a6dc9) Johnny Kollin](https://varri.com/insights/author/johnny-kollin) : 24 August 2022, 19:01:08 GST Learn about the increasing commitment to net-zero emissions in the GCC countries and how renewable energy investment companies are managing risks in... [Governance](https://varri.com/insights/tag/governance) [Climate Risk](https://varri.com/insights/tag/climate-risk) [ESG](https://varri.com/insights/tag/esg) [Solar Power](https://varri.com/insights/tag/solar-power) [Risk](https://varri.com/insights/tag/risk) [Renewable Energy](https://varri.com/insights/tag/renewable-energy) [Climate Change](https://varri.com/insights/tag/climate-change) [Net-Zero](https://varri.com/insights/tag/net-zero) [Credit Risk](https://varri.com/insights/tag/credit-risk) [Client Reviews](https://varri.com/insights/tag/client-reviews) [Green Finance](https://varri.com/insights/tag/green-finance) [Read More](https://varri.com/insights/risk-advisory-in-the-renewable-energy-sector) [![EU Governments Announce Exceptional Support to Utility Companies](https://varri.com/hubfs/swedish-government-press-briefing-3-sep-2022-2.jpeg)](https://varri.com/insights/eu-governments-announce-exceptional-support-to-utility-companies) #### [EU Governments Announce Exceptional Support to Utility Companies](https://varri.com/insights/eu-governments-announce-exceptional-support-to-utility-companies) [![Picture of Johnny Kollin](https://app.hubspot.com/settings/avatar/66c1ed15fd0cc9c63bedaf0c7d2a6dc9) Johnny Kollin](https://varri.com/insights/author/johnny-kollin) : 5 September 2022, 14:29:44 GST EU governments introduce credit guarantees for utility companies to prevent systemic risks. 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