Risk management and why it is never too late to set it up in your company
June 30, 2018
The risk in correlation with the fact if the company will be able to achieve its objective at all:
Risk cannot be totally eliminated and this anyone who has worked in a corporate of any size will know full well. What however can be done is risk can be accepted as a part of the business processes, internalized, identified, assessed and managed after strategizing what is the best way to handle it.
A corporate today that invests equally in its risk management department is a clear winner. In fact, it is believed strongly by industry experts that when uncertain factors that are related to the risks that the company is facing r prospectively may face in the future determine whether at all, when and to what extent the company will achieve its future objective, its goals are termed as risks. So, we can see that it is a wide term. A risk can be any kind of hindrance that the company can face in achieving its objectives.
Risks can be internal as well as external.
These are risks that the company will not have any direct control of. a few examples of external risks or threats are the change of government, spike or plummeting of exchange rates, drastic changes in the interest rates, a change in the country’s laws, etc.
These are risks that the corporation can have a direct control over provided the risks are identifies and assessed in time to be able to tackle them effectively without them having an overbearing effect on the organization. Some of the examples of internal risks are noncompliance of documents or processes in consonance with the law of the land, information breach, breaches in security, etc.
it is heartening to note that corporate who never even gave a thought to setting up a risk management cell today is now consciously bracing up to set it inside their organization besides also taking external help and advice from risk managers who consult from outside the organization itself.
The role of the risk management team:
- Identifying the risks, present and the potential risks. Identifying is the first step in being able to tackle them effectively.
- Strategizing in order to guard the organization against such risks;
- Executing strategies that will help in identifying potential risks in the future, and
- Motivating the employees to take a proactive role in identifying, assessing and helping come out with strategies to manage such risks as well as to successfully implement them.