Implementing a risk management program
An effective risk management program assists a business in evaluating the whole spectrum of threats it confronts. Risk management also identifies the link between risks and the cascading effects they might have on the strategic goals of a company.
This comprehensive approach to risk management is known as enterprise risk management (ERM) since it focuses on predicting and comprehending risk throughout a business. In addition to a focus on internal and external risks, ERM highlights the need to manage positive risks.
Positive risks are opportunities that, if seized, may increase the value of a corporation or, if ignored, can harm it. In fact, the goal of a risk management program is not to eliminate all risk, but rather to protect and increase corporate value by making prudent risk choices.
The following categories are the three forms of risk management:
- Project risks: Multiple types of financial, scheduling, human, resource, and...
