What do you think about the Future of Risk Management?

We live in a changing world; with change risks arise and if not handled right organizations can collapse under the pressure of risks. what I'm trying to say here is that we need to think and consider risk management as a mentality, way of living and management stream as it is a serious mean to prevent failure and more to prevent falling in traps of crisis

Risk management is an essential part of strategic management in any organization. It is the procedures followed by institutions in an orderly fashion to face the dangers associated with their activities, in order to achieve sustainable benefits of each activity and each portfolio activities.

The primary focus of good risk management is to identify and address these risks. And have as their goal is to add maximum value a sustainable activities for each institution. Risk management helps to understand the positive and negative aspects of each potential factors that could affect the institution. They increase the likelihood of success and reduce both the probability of failure and the uncertainty of achieving the general objectives of the institution.

Any type of risk can be reduced to some extent by increasing the expenditure on the precautionary measures. For example, the risk of interruption of production due to the shortage of a major material in the production may be eliminated if sufficient reserve is established from the stock of this material. New moving wheels are based on high-rise buildings so they resist earthquakes and of course require additional expenses

Risk management (RM) has always been an integral part of life and always be. This is because risk management is how we decide to, systematically and proactively, allocate our available resources to maximise the likelihood of achieving our objectives. 

The term Enterprise Risk Management (ERM) has been coined during the last couple of decades after the methodology of managing risk has been enhanced and formalised in International Standards. The integration of ERM within Governance, Risk, Compliance (GRC) frameworks has been required by Regulators in a number of countries to help evidence robust corporate governance, particularly after well publicised examples of corporate failures in business sectors such as Financial Services. 

Therefore ERM is an integral support function within strategic and operational management.

 

 

As the methodology for managing risk, and our skill in applying it, improve the awareness and importance of RM/ERM become greater. Hence risk management will continue to flourish in the future.