Risk management is the confident achievement of results without force majeure. Every manager should understand that for the success of his organization, it is worth paying special attention to this direction.
Risk always consists of three parts:
1️. Probability that something will go wrong.
2️. Conditions under which they occur.
3️. Negative consequences of its occurrence.
The effectiveness of the organization depends on the ability to manage risks. After all, the work of an organization with a moderate level of risks allows it to develop.
Implementation of risk management is the process of identifying, assessing and controlling threats to the organization's financial and reputational capital.
What will help to implement risk management into the organization:
🔹 tone from the top management. That is, the management is aware of the importance and ensures independence and the possibility of implementing the compliance function in the organization;
🔹 coordination of compliance by the risk management unit at all levels (top management, heads of units, employees of the organization);
🔹monitoring and revision of the risk management system and continuous improvement.
What are the benefits of effective risk management?
🔹increasing the efficiency of strategic activity planning and achieving results;
🔹 increasing the investment attractiveness of the organization due to the formation of a transparent and socially responsible reputation;
🔹the release of resources for the development of the organization due to the minimization of the negative consequences of the risks (fines, sanctions, court cases).
Еffective risk management is based on internal communication and integrated interaction of all parts of the organization: from top management to direct employees. The task of the authorized person is to support and direct such interaction in a rational and effective way, that is, to coordinate this process.
