This task is involve all the point of risk management process. Identify the risks and potential effects in general, can help the local computer in starting the process of risk management or contract, auditors should recommend that agencies explore better ways of management in the region. Reducing the risk “acceptable” level of risk can not be eliminated. It includes the level of risk the organization can live, make sure that the right controls in place to keep the risk to an acceptable level. Transfer of risk to the insurer. i.e. to ensure the company’s property theft or damage, such as wind or fire damage or transferring the risk to another organization (for example, using a third install network equipment vendor that sales are made responsible for plant success or failure).
Examine and discuss each step below which forms part of the risk management process followed within an enterprise. Explain the reasons behind each step, what each step achieves for the enterprise and give examples.
Determine the objectives of the organisation :
Risk management and risk management purposes, the first step toward defining the goals of your organization to define a shared vision. A general view of the back, you have to define the objectives of the overall risk management purposes.
In a statement, while the aspirational vision, goals and objectives as stated in simple terms what needs to be achieved in general. They should be in a real system. They are defined in the company’s business strategy.
For example, some common goals, risk management companies choose to design their ERM approach as follows:
In order to manage the cost of risk-based business, multiple functions and business units to develop a general understanding of risk.
Get a better understanding of the risks of competition.
Creating a protection against financial surprises.
Create and effectively limited possibilities, vital, improve opportunities to deal with disaster risk.
Achieve lower costs through better management of local resources.
Allocate capital more efficiently.
Be consistent with the risk management objectives and strategies to support the business objectives and the company. Therefore, the company’s business model and risk management provides an important context.
identify exposures to loss :
Identification of risk management is an important first step; If you know that it is quite possible loss of coverage as a truly strategic, cost-effective to deal with them will not be able to develop.
Hundreds can not risk or hazard that may lead to an unexpected loss will be recognized. For example, if you had a fire, how can you fire losses do not realize that large. This includes building demolition and clear,