Businesses face risk every day. In fact, without
risk a business or organisation would not grow and thrive.
Management is the process which aims to help
organisations understand, evaluate and take action on
all their risks with a view to increasing the probability
of their success and reducing the likelihood of failure.
Risk management gives comfort to stakeholders (shareholders,
customers, employees and so on) that the business is
being effectively managed and helps the organisation
confirm its compliance with corporate governance requirements.
Risk Management is relevant to all organisations whether
they are in the public or private sector, or whether
they are large or small. It should form part of the
culture of the organisation, with an effective policy
and programme led by top management with clear responsibilities
laid down for every manager and employee to be involved
in the management of risk. It supports accountability,
performance measurement and reward thus promoting efficiency
at all levels.
key stages of the risk management process are set out
in the Risk
Management Standard which may be downloaded free
from this website, or purchased in hard copy.
larger organisations there is likely to be a need for
a dedicated Risk Manager
whose role would include:
||setting policy and strategy for risk
||being the primary champion of risk management
at strategic and operational levels
||building a risk aware culture within the organisation
including appropriate education and training
||establishing internal risk policy and structures
for business units
||developing risk response processes including contingency
and business continuity programmes
||preparing reports for the board and the stakeholders
requires a detailed knowledge and understanding of the
organisation and the processes involved in the business.
As well as internal specialists there is a huge number
of different advisers and consultants providing support
to an organisation's risk management programme. Because
of this, risk management is a truly multi-disciplinary
profession. See the careers
section of this website for more information.