Risk Event vs. Risk Incident

Attribute	Risk Event	Risk Incident
Definition	An event that could potentially cause harm or loss	An event that has resulted in harm or loss
Occurrence	Potential or future event	Event that has already happened
Impact	Potential impact on objectives	Actual impact on objectives
Prevention	Measures to prevent the event from occurring	Measures to prevent similar incidents in the future

Definition

Risk event and risk incident are two terms commonly used in the field of risk management. A risk event refers to any occurrence that can have an impact on the achievement of an organization's objectives. This can include both positive and negative events. On the other hand, a risk incident specifically refers to an event that has already occurred and has had a negative impact on the organization.

Timing

One key difference between a risk event and a risk incident is the timing of when they are identified and addressed. A risk event is typically identified before it occurs, allowing the organization to put in place measures to mitigate or manage the risk. In contrast, a risk incident is identified after it has already occurred, requiring the organization to focus on managing the consequences of the event.

Impact

Another important distinction between a risk event and a risk incident is the impact they have on the organization. A risk event may or may not have a significant impact on the organization's objectives, depending on how it is managed. In contrast, a risk incident has already had a negative impact on the organization, potentially leading to financial losses, reputational damage, or other consequences.

Response

When it comes to responding to a risk event versus a risk incident, the approach taken by the organization may differ. In the case of a risk event, the organization can proactively plan and implement strategies to prevent or minimize the impact of the event. On the other hand, when dealing with a risk incident, the focus is on containing the damage, conducting a root cause analysis, and implementing corrective actions to prevent similar incidents in the future.

Prevention

Preventing risk events and risk incidents is a key goal of any risk management program. By identifying potential risk events early on and implementing controls to mitigate them, organizations can reduce the likelihood of these events occurring. Similarly, by learning from past risk incidents and implementing measures to prevent their recurrence, organizations can improve their overall risk management practices.

Monitoring

Monitoring is an essential aspect of managing both risk events and risk incidents. By continuously monitoring the environment for potential risk events, organizations can stay ahead of emerging risks and take proactive measures to address them. Similarly, by monitoring the impact of risk incidents and the effectiveness of response measures, organizations can learn from past incidents and improve their risk management processes.

Conclusion

In conclusion, while risk events and risk incidents are related concepts in the field of risk management, they have distinct attributes that differentiate them. Understanding the differences between these terms is essential for organizations to effectively manage risks and protect their objectives. By proactively identifying and addressing risk events, and effectively responding to risk incidents, organizations can enhance their resilience and ensure long-term success.