written by: T.S. SARASWATHI
Risk management is to identify the business that will ensure that you should be aware of the risks they are exposed. Risk management is to ensure that the business is not exposed to risk by an effective implementation of the plan or to reduce the impact by mitigating such risk.
The plan of risk management encompasses techniques as well as strategies for confronting and recognizing the threats. If the risk management is good the time taken to implement and the cost involved for such implementation can be reduced to a greater extent. Because it becomes easy to answer the questions like:
1. Where can I go wrong?
2. What we do to prevent harm and damage or loss that occurs in response to both?
3. If anything happens, or how we will pay it?
Benefits of risk management
Risk management encompasses a systematic and clear approach to identify the risks. Clear understanding of all the risks, measure, prioritize the business and take necessary action to decrease the loss. Other benefits of risk management in the business encompass:
1. Resources saving People, property, income, assets and time are the important resources for any business.
2. Protecting the public image as well as reputation of the business, so the Brand image can be created or restored.
3. Avoid or minimize legal liability and improve stability operations.
4. Protect people from injury.
5. Protect the environment.
6. Strengthen the ability for the sake of preparing for different situations.
7. Reduce liability.
8. Helps to define clearly the needs of the insurance.
The practices of effective management risk do not eliminate the risk, it such mitigate the risk. If there is an operational and effective management risk practices the insurance companies come forward as your business is committed to reducing the loss or prevention thus the insurer find the right deal. This gives a better chance for the business to find an insurance.
Why you should manage the risk in the business?
The increasing plea in the current scenario for various companies will make the business in a standstill position, so to defend against the sue, as the injured plaintiff has better chances to win the case and since the company has to maintain its standard it is obliged to mitigate it risk at various stages