Risk management is not easy to understand because risk is difficult to understand. An accountant will tell you risk management is about controls and an actuary will tell you it’s about likelihood. Someone in the mining industry will view management of risks very differently than someone with a background in technology.
Anyone motivated by the First or Second Most Important Need sees risk management as something that reduces revenues, adds costs and/or reduces profits. Revenues and costs are tangible and risk is only an ethereal probability.
It’s hard for risk management to compete with the first two Needs and when you’re a risk management practitioner you always feel like the bronze medalist in a two-person race.
Many of you already running a cannabis business are probably thinking that you don’t need any more risk management after all the money and time you’re currently spending maintaining your license and complying with physical security, record-keeping, or production practices, etc., related to Access to Cannabis for Medical Purposes Regulations (ACMPR). Please hold your contempt for a moment.
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