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    Risk Management

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    Shamoil Shaikh
    The document discusses the importance of risk management in business. It outlines the key aspects of risk management including identifying risks, assessing likelihood and responses. It also discusses why risk management is becoming more important for businesses and common risks businesses face.

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    Risk Management

    Uploaded by

    Shamoil Shaikh
    351 views11 pages
    The document discusses the importance of risk management in business. It outlines the key aspects of risk management including identifying risks, assessing likelihood and responses. It also discusses why risk management is becoming more important for businesses and common risks businesses face.

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    The document discusses the importance of risk management in business. It outlines the key aspects of risk management including identifying risks, assessing likelihood and responses. It also discusses why risk management is becoming more important for businesses and common risks businesses face.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    351 views11 pages

    Risk Management

    Uploaded by

    Shamoil Shaikh
    The document discusses the importance of risk management in business. It outlines the key aspects of risk management including identifying risks, assessing likelihood and responses. It also discusses why risk management is becoming more important for businesses and common risks businesses face.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    The Importance of Risk Management in Business

    One term that has become synonymous with doing business in any industry is risk management. Its really not enough to just open your doors and start operations without thinking ahead.
    Elements of risk are everywhere and when they are identified before they become an issue, its far easier to come up with viable solutions. Keep reading to learn more about this critical business topic.

    What Is Risk Management?


    Basically, risk management refers to identifying, assessing and taking economic control of various business risks. Risk management uses a variety of different tools to provide realistic solutions, and employees from several different levels of an organization may be involved. Some risks are easy to predict, while others are completely unpredictable and beyond anyones control.

    Steps In the Process


    Some of the details of a thorough risk management process include:
    Identifying all the risks that pertain to running your

    business Reviewing and estimating the likelihood they will occur Understanding each risk and how to respond Creating a system using the most effective tools for each type of risk Putting the system into practice whenever necessary

    Why Is Risk Management Becoming More Important?


    The practice of risk intelligence and risk management is becoming more of an issue and more important in many industries because:
    Customers are more prone to litigation The public is more critical Insurance coverage isnt as comprehensive Legislation is more strict and extensive Management is more cautious after learning from past

    mistakes

    5 Key Risks All Businesses Face


    All businesses face risks that are unique to them and risks that are the same. Here are five that all businesses must deal with:
    1) Development risk 2) Manufacturing and operations risk 3) Sales and marketing risk 4) Profit and loss risk 5) Future growth risk

    When Risk Management Is Most Important


    Risk management is an important factor all the time, but especially in situations where:
    A business has multiple sites A business is too big for any individual to know all the

    potential threats A business has operations overseas A business has many suppliers or subcontractors A business uses a wide range of processes

    5 Qualities of a Good Risk Management Program


    Every good risk management program has similar traits and qualities. Here are five that all good programs share:
    1) The program is inclusive - it doesnt rely on just one

    person or group inside the business to succeed. 2) Approved by senior management - the active support of senior management will improve the likelihood of success.

    5 Qualities cont
    3)

    4)

    5)

    Transparency - a risk management program works best when then the goals, process and results are shared with stakeholders. Proactive - the program should include processes that take advantage of opportunities presented by variable risk. Complete - A good system addresses how risk affects the company as a whole, it doesnt just identify which ones are a threat.

    Modern Risk Management


    As more and more businesses increase their reliance on the internet, new risks are evident and more security measures must be put in place to address them. Some new age risks include:
    Privacy violations
    Copyright, patent and trademark infringement Employee online behavior Noncompliance with foreign law Increased risk of lawsuits

    References
    http://www.morebusiness.com/running_your_business/ management/Risk-Managment.brc MoreBusiness.com http://www.cholarisk.com/riskmanagement.asp Cholarisk.com http://www.aiu.edu/publications/student/english/Busines s%20Risk%20Management.html Atlantic International University

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