Risk Management

All businesses, large or small involve a certain degree of risks such as operational collapse, financial crash, environmental disasters and regulatory defilements. It is quite impossible to remove all the risks within the organisation, so it becomes important to identify and manage the risks effectively. Risk management is the process of identification, evaluation and management of risks to reduce, review and curb the chances of occurring unfortunate and uncertain events in the future. Effective implementation of risk management helps the organisations to achieve their objectives. The risk management practices involve continuous risk management, software risk evaluation and team risk management.

The Enterprise Risk Management is emerging as a most widely used tool across the organisations due to its extended networks and integrated approach for managing risks. It helps the organisations to maximise opportunities and manage their risks systematically. It primarily focuses on health and safety, internal control, corporate governance, business continuity, planning and financial services. Risk Management enables the risk managers, project or program managers and operational staff to identify the different types of risk occurred, assess the potential risks and impact of various risks on the growth of the organisation.

Benefits of a Risk Management

Organizations implementing ERM is gaining more attention of senior management results in a detailed discussion of risks and better decision-making at all levels. Here are few benefits of adopting effective risk management program:

It provides in-depth knowledge of risk appetite and risk tolerances and supports effective structure, monitoring, controlling, reporting and analysis of risks.
It provides management with a framework to analyse the risks to exploit certain market conditions and enhance competitive positions.
Increase organisation’s efficiency and reduce the risks by optimally utilising and allocating the available resources.
Reduce business liability, get credit for cooperation and build a better defence to class actions.
It helps in enhancing the organisation’s reputation and protect the business from uncertain risk factors.
It reduces operational losses and implements disaster recovery policies and procedures.