4 risk management techniques

Risk management is too often treated as a compliance issue that can be solved by drawing up lots of rules and making sure that all employees follow them.

Many such rules, of course, are sensible and do reduce some risks that could severely damage a company. But rules-based risk management will not diminish either the likelihood or the impact of a disaster such as Deepwater Horizon, just as it did not prevent the failure of many financial institutions during the 2007–2008 credit crisis.In this article, Robert S.

Kaplan and Anette Mikes present a categorization of risk that allows executives to understand the qualitative distinctions between the types of risks that organizations face.

Risk management techniques pdf

Risk management process

4 risk management strategies pdf

Risk management techniques in insurance pdf

Methods of risk management

Preventable risks, arising from within the organization, are controllable and ought to be eliminated or avoided. Examples are the risks from employees’ and managers’ unauthorized, unethical, or inappropriate actions and the risks from breakdowns in routine operational processes.

Strategy risks are those a company voluntarily assumes in order to generate superior retu

how to manage risk in business