What are controllable risks?

Controllable risks are those that can be influenced or mitigated through actions or decisions. These risks are within an individual's or an organization's control to manage and reduce their potential negative impact. Examples of controllable risks include:

1. Operational Risks: These risks arise from internal processes, systems, or human factors within an organization. They can include risks related to production, supply chain management, inventory control, IT systems, and security breaches.

2. Financial Risks: These risks are associated with financial decisions, investments, market fluctuations, credit risk, and cash flow management. Examples include interest rate changes, currency fluctuations, and default by debtors.

3. Compliance Risks: These risks relate to the failure to comply with laws, regulations, ethical standards, or industry guidelines. They can arise from changes in legislation, legal proceedings, or failure to meet regulatory requirements.

4. Human Resources Risks: These risks are related to the management of employees and human resource practices. They include risks associated with employee turnover, skill gaps, absenteeism, workplace accidents, and labor disputes.

5. Project Management Risks: These risks arise during project execution and can impact project timelines, budgets, and deliverables. They include risks related to resource availability, scope changes, technical complexities, and effective communication.

6. Strategic Risks: These risks relate to the overall strategy and direction of an organization. They include risks associated with market competition, technological advancements, globalization, changes in customer preferences, and economic conditions.

7. Environmental Risks: These risks are related to the impact of an organization's activities on the environment and natural resources. They include risks associated with pollution, waste management, climate change regulations, and resource scarcity.

8. Cybersecurity Risks: These risks arise from threats to the confidentiality, integrity, and availability of information and IT systems. They include risks related to cyber attacks, data breaches, system failures, and unauthorized access.

To manage controllable risks effectively, organizations can implement various strategies such as risk assessment, mitigation plans, contingency planning, insurance coverage, internal controls, regular monitoring, and employee training. By identifying and proactively addressing controllable risks, organizations can reduce their potential negative impact and improve overall performance and resilience.