If you think of risk management and how it employs the idea of identifying risks, prioritizing risk, and dealing with risk, a poor risk management example could be the effects of Hurricane Katrina. The government powers-that-be ignored warnings of failing levies and the damage that could result from floods.
Over 1,300 people were killed as a result of Hurricane Katrina and over 250,000 homes were destroyed. If risk management was implemented years earlier with regard to failing levies, how would things have been different?
Determining the Risk - If both local, state, and federal governments would have embraced studies on weak levies, and taken them seriously, how risky the levies could be would have been determined.
Prioritizing the Risk - Once the levies were identified as a risk, each levy could have been given a priority of risk as far as needed repairs first and last.
Dealing With the Risk - Through coordinated efforts, the levies in and around Louisiana would have been secured by the use of good risk management.