Everyone Needs Risk Management
What is risk? Some say risk is a nasty four letter word that can ruin your life. Risk management is serious business.
As an industry, it includes over 30,000 companies.
[dt_divider style=”thin” /]
The Steps in Managing Risk
Here is a four-step process you can follow to manage your risk.
1) Assess
2) Categorize
3) Consider
4) Implement
[dt_divider style=”thin” /]
Risk management is not only for companies, but for individuals as well. Did you know there are more than 18 different risks you can face as an investor?
[dt_divider style=”thin” /]
Risk management should:
- create value – resources expended to mitigate risk should be less than the consequence of inaction
- be an integral part of organizational processes
- be part of decision making process
- explicitly address uncertainty and assumptions
- be a systematic and structured process
- be based on the best available information
- be tailorable
- be transparent and inclusive
- be dynamic and responsive to change
- be capable of continual improvement and enhancement
- be continually or periodically re-assessed
[dt_divider style=”thin” /]
Article source: Forbes
