Difference between Risk Management and Control Management

Risk management and control management are closely related concepts, but they serve different purposes within an organisation's overall governance framework.

1. Risk Management

Definition: Risk management is the process of identifying, assessing, and prioritising risks, followed by implementing measures to minimise, monitor, and control the probability or impact of these risks.

Key Elements:

• Identifying potential risks (hazards, financial losses, operational failures, etc.)

• Assessing the likelihood and severity of risks

• Developing strategies to mitigate, transfer, avoid, or accept risks

• Monitoring and reviewing risks continuously

  
  

Example:In a mining operation, risk management involves identifying hazards such as equipment failure, exposure to harmful gases, or cave-ins and implementing strategies like regular equipment maintenance, gas detection systems, and reinforced tunnel designs.

2. Control Management

Definition: Control management focuses on implementing and maintaining specific measures (controls) that ensure operations remain within acceptable risk levels and comply with regulatory and organisational standards.

Key Elements:

• Implementing control measures (engineering controls, administrative controls, PPE, etc.)

• Monitoring and enforcing adherence to safety protocols and regulations

• Evaluating the effectiveness of controls through audits and inspections

• Adjusting controls based on performance and incident reviews

Example:Continuing the mining example, control management includes ensuring that ventilation systems are properly maintained, workers wear gas masks in hazardous areas, and all safety procedures are strictly followed through routine compliance audits.

Key Differences

Feature	Risk Management	Control Management
Focus	Identifying, assessing, and mitigating risks	Implementing and maintaining risk controls
Purpose	Reducing uncertainty and potential losses	Ensuring compliance and safety through controls
Process	Analysis, prioritisation, and strategy development	Execution and enforcement of safety measures
Approach	Proactive – focuses on risk reduction strategies	Reactive and proactive – focuses on ensuring effective control measures
Example	Identifying exposure to dust and assessing lung disease risks	Implementing dust suppression systems and enforcing PPE usage

Risk management is about identifying and planning for potential risks, while control management is about ensuring that specific actions are taken to manage those risks effectively. In practice, both work together to create a safe and compliant work environment.