Risk management encompasses the identification, analysis, and response to risk factors that form part of the life of a business Business Life Cycle. The business life cycle is the progression of a business in phases over time, and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline..
Effective risk management means attempting to control, as much as possible, future outcomes by acting proactively rather than reactively. Therefore, effective risk management offers the potential to reduce both the possibility of a risk occurring and its potential impact.
Risk management structures are tailored to do more than just point out existing risks.
A good risk management structure should also calculate the uncertainties and predict their influence on a business.
Consequently, the result is a choice between accepting risks or rejecting them. Acceptance or rejection of risks is dependent on the tolerance levels that a business has already defined for itself. Creating and following a comprehensive, structured risk management approach leads to the most consistent, desirable risk management outcomes.
An organization’s risk management approach should be customized to their own needs, including the organization’s objectives and the external and internal context in which the organization operates.
As the organization changes, including its external and internal context, the organization’s risk management program and efforts should change, too. Change is inevitable and successful organizations know how to work with change. A risk management program should help the organization anticipate, identify, acknowledge, and respond to changes in an appropriate and timely way.
We help you to create a Customised Risk Management Policy .