Risk Management Explanation and Framework

Risk management is work program and strategies meant to reduce vulnerability and promote conservation actions, developing mitigation and preparedness for natural and manmade disasters.Talking risk management means developing a series of measures to meet, and size up, all elements related to risks. A business must address them, decrease them, or at best, annul them to be successful. Many businesses have established parameters, methods and phases of work to address risk management in order to define a valid model that allows a community to prepare for and live with risk. This depends largely on economic resources, the environment, culture or religion of a particular community.

Here is the framework used by many companies today:

Risk Assessment

Identification of a problem.

Drawing up a risk profile.

Ranking the hazard for risk assessment and prioritization.

Establish a policy for conducting risk assessments.

Commissioning of the risk assessment.

Review the results of the risk evaluation.

Evaluation of risk management options

Identifying risk management options.

Selecting the preferred option, including consideration of an appropriate standard. This “standard” describes the level of risk taken by risk managers or in the risk option chosen.

Final decision from the management team.

Monitoring and review

Evaluation of the effectiveness of any measures taken.

Review the management and / or risk assessment, where appropriate.

The result of the risk assessment process should be combined with the evaluation of the options available. In terms of risk management, reaching a decision on the risk in question is vital. Obviously, the protection of human health will always come first, but other factors are also deemed appropriate. For example, economic costs, benefits, technical feasibility, risk perception, etc. are all valuable measures that need attention during risk assessment and management. Once implementation of the decisions have been made, management should monitor the effectiveness of the control measures in order to ensure that they meet the objective set.

A risk management program requires the participation of qualified professionals, ones who must look at the characterization of the threat, organizing and coordinating with the right people. Risk management is a strategy for the medium and long term, something that requires the technical and policy foresight, therefore improving the socioeconomic development of the business. For more information, contact http://rilianceassist.com today.