As risk cannot be eliminated in its entirety, the question is how to deal with the issue effectively without putting the business and its managers in a straitjacket. Risks must be identified, evaluated and controlled to allow the business to function and grow. The purpose of effective risk management is to enable the company to prepare for foreseen risks that may materialise and take steps to prepare for such events by putting in place the best systems to reduce or minimise the risk to manageabl...