The Principle of Personal Risk Management

You surely understand that you are surrounded by a lot of risks in your life. And you also learn what’s risk. In today’s complex societies, there are many factors to put you into risky situations. As I explain in the previous chapter, risks consist of hazards as fundamental situations to cause perils, perils for visualized risks and losses as the form of actual damages. What’s more perplexing, these factors at each stage function complexly to cause damages. Hence here is a necessity for anyone to cope with risks.

PRM(Personal Risk Management) is a method to manage risks which are happening in ordinary life. The word of “management” is associated with something related to company’s. As your guess is right, risk management itself has been developed in the company’s management. As I have been saying in CRM, it's an important method to not loss profits in companies.

Some people must have hatred for the word of management since they don’t want to be managed. Even if you are managers at any levels for companies, who always think of how to get along with at work, you want to be free from company’s things at least in private time. As I explain repeatedly, the risks surrounding us are so complex that risk management method will make it necessary for individuals to cope with them. Don't worry about it. It's not so difficult. Regardless of whether or not you are conscious of it, many people ordinarily use management methods in every day life.

When you are thinking of traveling, for example, what you do first is to plan the travel. The plans are such as where you go, how much budget you can spend, how long it is, who you go with and so on. There are so many things you have to consider at this planing stage. You may take notes on everything for planning. And then, you actually go traveling according to the plans you come up with in advance. Plans are mostly carried out although you may change the traveling courses a little. It would not go as far as to change the main spots where you are supposed to go. But you may extend the travel within the limited time and budget. Finally after you come back, you may be thinking of what is happening during the travel. If you go traveling with friends, your topics with the friends are about it at least for a couple of days, often seeing the pictures. On the negative sides, you may be worried about the exceeded budget because you buy more souvenirs than you think.

This is so-called management circle that has a plan-do-see process. If you are workers despite of whether or not you are managers, you ever hear the word and actually carry it out at work. So management is not special for any people. Anybody experiences it in life as you see the example above. As I dare to repeat it again, today's risks even in daily life are so complex and diversified that individual people have to deal with proper methods. It's PRM. PRM also has a plan-do-see process. As you see from the next section, Identification and Evaluation are the stages for plan, Disposal for do and Review for see. Although PRM is based on CRM and some parts seem to be difficult, this is "not" special. I think that I can come up with the idea to make it as easy as possible to put into practice with plain examples. It's you who could get damaged your property, assets or even your life. No one helps you. Governments have the limitations to protect you. It's you who protect yourselves and your families. Of course, PRM is not perfect. However, I hope that PRM will become a cue for your better life.