Integrated Risk Management
Use of Integrated Risk Management
Integrated Risk Management is used by the corporate sector as well as the government sector. Today's world is full of uncertainties. The companies are expected to take that into account and perform well. The government sector is also expected to show a lot more efficiency and transparency under all circumstances. Here in comes the integrated risk management plans.
Purpose of Integrated Risk Management
- Provide a guideline for pursuing a systematic risk management policy
- Foster the growth of a risk smart employee base. They learn to be responsible risk takers.
- Propose personalized risk management policies for various departments
- Hone the decision making and priority fixing skills of concerned persons
Steps in Developing an Integrated Risk Management Framework
- Risk profile development
- Putting in place an integrated risk management plan
- Implementing the integrated risk management plan
- Making the risk management learning process a continuous one. This increases the adaptability of the plan
The integrated risk management followed by business organizations is a continuous process. It gives us a systematic framework to handle risks. Risks or uncertainties are unavoidable in everyday life. They affect the day-to-day functioning of corporate and government organizations. Hence the idea is to put up a foolproof back up plan. The plan starts with identification of the risk factors. It is followed by putting up a risk management plan. Implementation and feedback then follow suit.
Integrated risk management is carried out keeping in view the long-term goals and objectives of a corporate organization. Integrated risk management framework helps a business organization to attain its set goals by cushioning the destabilizing effects of risks. Integrated risk management also fosters the concept of shared responsibility and adaptability.