Risk is a fact of life. It lies in every human activity. This is a natural phenomenon that has its use. But all the risks are not bad. And it's also related to rewards. If someone wants to take a philosophical view of the subject, it is difficult to imagine life without risk, and this can also be invigorating for the mind and get the most out of it.
However, in the context of business risk management, concerns about the negative impact of the phenomenon and how it can be eliminated or at least minimized.
Your business may be at risk in different quarters. There are basically two types of risk classes or classes. One is coincidental, the other is design. Let's suppose a company faces a situation that once occurs on a blue moon. Preparing for this situation, the company loses, say, USD: 10,000.00. However, to prepare for this risk, the company had to spend $ 100,000. This risk was just a coincidence. On the other hand, many US banks have come under the burden of bad housing mortgages. This is the risk of design. These banks were in an open mind.
Whatever the risk class or class is, the first step businesses need to deal with is to create a mechanism that anticipates and anticipates. The second step would be to minimize the part that can not be eliminated. The third step would be transfer or redirect. The fourth step would be to accept the remaining risk and try to get started with the price, that is risk and pain, and then retire to action.
The next series can be used to address the risk in order to achieve the best possible results. We must not forget that there is not one perfect way to deal with this evil. Depends on the nature of the risk, the circumstances and the resources available, which are available at a given time. But the wisdom of chance is not disputable.
1) Identifier: Look and See! The risk is everywhere. All activities or even inactivity have some inherent risks. The idea is to break all activities into independent components and identify the risks associated with them all. The Identification of Risks is part of the groundwork of risk management, and the more complete and efficient the groundwork is, the better the outcome. All business activities need to be explored and all potential problems and risks associated with them should be summarized and addressed.
2) Elimination: After identifying risks, the next step is of course eliminating them. Of course, not all risks can be eliminated. Not all of them have to suffer. To the extent possible and viable, the risks must be eliminated by a combination of strategies, depending on the context, the nature and extent of the risks involved.
3) Damping: Unclosed hazards need to be reduced. The risk of loss of business depends on the severity of the risk. By reducing the severity of such risks, a business can reduce potential loss.
4) Acceptance: "What can not be cured must be maintained". But it can make a person's life safer and more comfortable if it becomes unavoidable in the intended way and relocate the risk within the organization's ecosystem so that it can be tolerated.
5) Redirecting or Delivering Risk: Another way to address this risk is to redirect or relocate the risk illegally to another organization. In other words, one risk can be outsourced to others, such as insurance. There is much to tell, and there is no perfect way to cope with it, unless we are prepared to have a better chance of solving it.
However, the methods used to treat this risk may not mean that healing is worse than the disease.
Source by sbobet