What is risk management:

Risk management is the process of identifying, evaluating and managing risks, which is designed to minimize, control and monitor risks by cost-effective use of resources.

The place of risk management

Risks occur at all stages of life, in all industries and in all service providers, both in the private and public sectors. The severity of the risks involved depends on many factors. In order to quantify such severities, most organizations traditionally use a risk process to assess the likelihood of the risks and their perceived or calculated impacts. This enables the priority of risks and resources to meet the general interests of the organization and of internal and external stakeholders.

Risks, big and small

Today's connected and integrated world-class risks and their effects can translate and translate across international borders. They no longer belong to departments and within individual companies. Economic boundaries and geographic structures are such that companies need to assess risks in a world where an Icelandic volcano can cause a Japanese plant to close.

Likewise, at the organizational level, the importance of risk and security risks for the health, safety and well-being of employees is important for many companies as a legal obligation. Product Manufacturers design risk assessment to ensure that end users are protected from any security related design threat

Local authorities should ensure that secure public roads and gateways are provided to the public. For example, they need to measure the amount of sand and grains to ensure that they cope with the heavy winter weather to protect individual motorists and unsuspecting retired on an icy pavement.

In all of the above and in a number of other private and public sectors and services, it is essential that individuals or individuals identify potential risks, assess the likelihood of a risk, and calculate the impact or consequences of risk in order to minimize the risk

Risk Management – Does it Work?

Are you sure armed with the fact that there are risks everywhere, but there are reliable systems and processes that you can handle, can you be sure that these systems and processes work?

Of course, there are many examples of how risk management worked. If the available systems and processes do not work, they simply will not be used. Risk departments and risk managers may not exist and irresponsible responsibilities are likely to prevail.

However, risk management does not always work. It is impossible not to tempt you to say that the BP Oil Deficit in the Gulf of Mexico could be prevented if the risks were fully evaluated. Likewise, deficiencies in monitoring compliance with the risk of global financial problems have been placed at one of the largest financial institutions and banks in the world

Another dimension of risk management

With the spread of risk management tools, the use of highly complex modeling techniques, professionals and specialists in their field, why there is the magnitude and scale of the scale mentioned above, the risk of a local sidewalks that the child's vulnerability occurs in the local authorities

risk management is not just about rules and regulations. Successful risk management needs a culture and value system that ensures that it is part of an organization's DNA. If you perceive the corporate culture sensitively for those who pose a risk, any risk process is useless. People hope the problems will only go away. Culture should allow honesty and openness, allowing maximum benefits from tools and modeling techniques.

Why Choose a Career in Risk Management?

Risk managers and people whose task is to minimize the occurrence of risks are professionals in the field. The valuable contribution of all their organizations is enormous. Certain specialized industries, such as insurance, are sometimes required to handle risk management and will certainly add to the self-serving ability of individuals. However, many active risk management personnel do not consciously determine risk management careers. Some stumble. At this point, there is a choice. Does it stick to tools and techniques or seize the risk schedule and take it further? The development of corporate risk management is adapted to systems thinking; the inevitable connection between successful risk intelligent organizations and culture; the in-depth knowledge and independence of the organization is an immeasurable tool in a world where some have developed low risk tolerance. Career risk management can be as boring as exciting. The choice is yours.

But do not forget that the risk is to make growth, expansion and competition more effective. There is no reward without risk – for the organization or the individual

Source by Samantha Joy Pearce

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