What is active risk management?

Active risk management is characterized by a proactive approach that emphasizes the prevention of risks before they occur. This method involves identifying potential risks early, assessing their likelihood and impact, and then implementing measures to mitigate or eliminate them. By focusing on prevention, leaders can create a more resilient environment, allowing units to maintain operational effectiveness and adapt to changing circumstances without being significantly hindered by unforeseen challenges.

The essence of active risk management lies in its forward-thinking mentality, which contrasts with reactive approaches that address risks only after they manifest. This proactive stance is crucial for small unit leaders who need to manage operations efficiently while minimizing disruptions, thus reinforcing the importance of anticipating and preparing for potential issues rather than simply responding to them as they arise.