Before discussing risk management, we need to understand what is "risk"? The risk is "uncertainty of outcome". If an action has taken place and the probability of the result is uncertain, it is called a risk. There is a risk for any intervention. Creating a business poses a risk, buying a home poses a risk. The topic of risk management is so diversified that it has become a matter of expertise from financial institutions' risk management to software. Generally known or commonly used risk management is described below.
first Identification of risk
2. Assessing the likelihood of a risk
3. Determining the Consequences of Risks
4. How to reduce the risk
5. Reducing the likelihood of a risk
Any business is set to identify potential risks posed by potentially emerging and realistic situations. Consider a simple example; if you go through a street, you're in danger of speeding up. If this is a crowded street with lots of traffic, the probability of this event will be even greater.
Now, if a speeding car hit you, the least you can do with it may be to keep smaller pieces and bruises. The worst result would be if he was killed. Now, when you know what may be the result of risk taking, you will find a way to reduce the risk. How do you do it? In this case, look for and use the nearest pedestrian crossing. This reduces the risk factor for crossing the busy street.
Project Risk Management follows each of the same principles in each project. When a credit card company issues a credit card, it first performs a credential check. Checking for your ability to repay your bills. You will receive a credit card based on your earnings and costs. If you feel that you have a greater risk then your credit line will be removed accordingly.
Insurance companies risk taking out insurance. For example, an insurance company provides general insurance services. They have several sellers who sell insurance. Now if the insurer finds that eighty percent of the stores and offices in the building provided them. They risk risk directly. How do they do this by covering insurance companies? If the building fires, then the insurer and the subcontractors bear the loss. In the event that the insurer does not spread the risk, you will have to pay the full premium and the company is likely to retire to such an event.
Similarly, the bank is risky if all the capital is a single business. If the business fails, the bank crashes. Risk management plays a key role in real estate, stocks and all other businesses
Risk management teams in factories and workplaces appreciate the likelihood of a catastrophe occurring. They are then recommended to reduce the risk of risk. Employees use protective equipment and protective equipment, which is a means of risk management.
The essence of risk management is trying to reduce the chances of the tragedy occurring. Identify possible risks and reduce their chance. There are some risks that may occur and are usually ignored in risk management. Like an earthquake that occurs on land that did not have an earthquake and there is no mistake. This risk does not fall within the scope of risk management.
Source by sbobet