For many the area of risk management is a confusing and daunting place filled with a lot of complicated questions. Here are some of the most frequently asked questions about risk management to help give you a better understanding.
In order to grow we all must take risks and as such, risk is part of all of our lives. Risk management is the understanding, analysis and addressing of risk in order to make sure organisations achieve their objectives. Enterprise Risk Management (ERM) is an integrated and joined up approach to managing risk across an organisation and its extended networks.
Risk managers minimise exposure to risk through careful analysis of pertinent information, trends and history.
Enterprise risk management (“ERM”) is a process designed to anticipate and analyse potential opportunities and threats that could affect the achievement of a businesses objectives.This process is integral to the management and future direction of the business, and should be structured, consistent, and continuous across the entire organisation.
Traditionally, risk management tends to focus on safety, hazard-related, and legal liability issues such as fire prevention, insurance, and workplace safety. ERM both expands and elevates the risk management focus to consider the potential impact of all types of risks (strategic, human capital, compliance, financial, and operational issues, in addition to safety, hazard-related, and legal liability exposures) across the entire organisation and examines risks in the context of strategic objectives.
A risk management plan is a document that a risk manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix.
We hope the answers above have proven helpful to you. If you require a bit more information about how risk management could help your particular business, get in touch to book in a FREE session with one of our consultants.