Risk management: the potential loss of control system

The main goal of any business is to obtain the highest possible profits with minimal risk.The control system is called the potential loss risk management.It consists of two subsystems - the control object and subject of management.Risks arising from investing activities or in the process of economic relations between economic entities are subject to control.

professionals engaged in risk management - a subject.

Risk Management performs a variety of functions:

- forecasting and planning, is to develop activities that allow to maintain the level of risk within the plan;

- organization - the creation of a special structure within the company, to manage the risk;

- motivation - incentive system professionals for the effective application of administrative decisions;

- control - analysis of the effectiveness of interventions to reduce risk;

- regulation and coordination - the adjustment of programs and their implementation through effective delegation and segregation of duties.

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There are several methods of risk management.Risk management is using them, depending on the tasks:

- if the level of risk is too high, then apply the most effective method of failure;

- if there is a possibility to reduce it, then applied the diversification and hedging, capital management or quality;

- possible partial or complete transfer of risk, for example, an insurance company;

- making method involves the formation of reserve or insurance funds or the implementation of other ways that you can eliminate possible risks.

Types of risks can be:

- strategic, based on the long-term development of the enterprise;

- operating occurring directly in the implementation of the project or the economic activities;

- financial, associated with loss of capital;

- reputational, defining the status of the enterprise market.

depending on them, and form a separate category of the concept.Thus, the financial risk management used in investment activities and is the basis for the functioning of various credit and financial institutions.

Priority areas of risk management are determined depending on the overall assessment of external and internal factors that influence the potential risks in the activity of a particular company.

main objective of risk management is the recognition and classification of risks, the choice of tools and methods of insurance from them, their minimization or elimination of projects, if there is a high probability of significant losses.Effective risk management is a major platform for the successful and profitable development of the company.Therefore, it is necessary to pay maximum attention to this!Now you possess the basic information that will help move in the right direction.