Positive and preventive checks are two of the most important elements of a sound risk management strategy. Positive checks are proactive measures taken to reduce the risk of an event or problem occurring, while preventive checks are reactive measures taken to minimize the impact of an event or problem that has already happened.
Positive checks involve identifying and addressing potential risks before they become a problem. This can include activities such as conducting a risk assessment, establishing and regularly reviewing procedures to manage risk, and performing regular audits to ensure that procedures are being followed. By taking proactive measures, businesses can reduce the likelihood of an event occurring and the impact it would have.
Preventive checks, on the other hand, are reactive measures taken after an event has occurred. These checks can include conducting an investigation to determine the root causes of the incident, implementing corrective measures, and developing strategies to prevent similar incidents from happening in the future. By taking reactive measures, businesses can minimize the damage caused by an incident and reduce the chances of it happening again.
Overall, positive and preventive checks are essential components of a sound risk management strategy. By taking proactive measures to reduce the risk of an event occurring, businesses can protect themselves from potentially costly incidents. At the same time, by taking reactive measures to minimize the impact of an event, businesses can ensure that any incidents that do occur have minimal impact.