Riskiperä

Riskiperä is a Finnish term that translates to "risk-based" or "based on risk". It is used in various contexts to describe approaches or methods that prioritize actions or decisions according to their associated level of risk. This principle is applied in fields such as project management, safety engineering, and financial regulation.

In project management, a risk-based approach involves identifying potential risks that could affect a project's success, assessing their likelihood and impact, and then developing strategies to mitigate or manage these risks. This ensures that resources and efforts are focused on the areas that pose the greatest threat. Similarly, in safety engineering, riskiperä thinking guides the allocation of resources to address the most significant hazards, aiming to prevent accidents and ensure the well-being of individuals.

Financial institutions also employ a risk-based approach, particularly in areas like anti-money laundering (AML) and know your customer (KYC) regulations. This means that customers or transactions deemed to be of higher risk are subjected to more stringent checks and scrutiny. The goal is to optimize the use of resources by concentrating on higher-risk activities, rather than applying the same level of control to all situations. The concept of riskiperä emphasizes a pragmatic and efficient way of managing uncertainties by acknowledging that not all risks are equal in their potential consequences.