What is risk management?
To many social analysts, politicians, and academics it is the management of environmental and nuclear risks, those technology-generated macro-risks that appear to threaten our existence. To bankers and financial officers it is the sophisticated use of such techniques as currency hedging and interest rate swaps. To insurance buyers and sellers it is coordination of insurable risks and the reduction of insurance costs. To hospital administrators it may mean ‘quality assurance.’ To safety professionals it is reducing accidents and injuries.
Did you know that risk management is the practice and mindset of identifying and analyzing loss exposures and taking steps to minimize the financial impact of those risks on your congregation? It is essentially the continual process of making and carrying out decisions that will minimize the adverse effects of unplanned losses to your congregation and proactively establishing meaningful programs and processes to protect your congregational assets from loss due to fortuitous events. It includes the following general process: • Identification, analysis and evaluation of exposures to accidental loss to your congregation involving personnel, property and financial assets. • Use of a well designed insurance program including the use of loss control/prevention and safety concepts as provided below by links to Church Mutual Insurance Company to minimize or eliminate risks. This includes use of such measures as well written congregational audit guidelines and misconduct policies and procedures
That’s more post than I’ve got time for today, but I’ll leave you with the basic following thought for discussion: Risk Management happens in an organization when it’s analysts and engineers regularly/constantly consider likelihood and impact. It’s when the mission of a department isn’t just implementing controls – it’s understanding the impact of those controls (or lack thereof) on business development and the ability to effectively express that impact to the rest of the organization. Let me state that at least by using the last sentence above, I can understand how people can argue for Risk Management as an “enabler”. When compared to the instinctive approach to Control Management that passes for Security Management in many organizations, Risk Management can be thought of as such.
A5. Risk Management is the Management of the pure risks to which a company might be subject. It involves analysing all exposures to the possibility of loss and determining how to handle these exposures through practices such as avoiding the risk, retaining the risk, reducing the risk, or transferring the risk, usually by insurance. Arab Orient Insurance provides Risk Management Services to its customers.
Risk management, as it applies to the computer field, is the analysis of what can interrupt your core IT operating structure and data/processing availability, and then designing methods and processes to minimize the risk to an acceptable one (usually less than 0.0015% chance of occurrence for fortune 500 firms, less than 0.01% for small firms). We would be please to provide an in-depth risk assessment for your firm; feel free to contact us today for assistance with this and other services we provide.
