Every business activity involves a risk, therefore, it is very necessary to carry out a real Risk Management. Risk is defined as uncertainty that arises during the achievement of an objective. These are, in essence, adverse circumstances, events or events that impede the normal development of a company’s activities and which, in general, have economic implications for its managers.
The concept of risk is associated with any probability of economic loss. It is also often directly related to hazards, threats, harm or damage.
This is not to say that all the elements that frame the commercial activity of companies are risks in themselves. On the contrary, there are certain
essential characteristics that define them as such:
- It must be associated, in some way, to the activity of the company.
- They are complex, they do not have an immediate solution.
- Its impact must be significant.
- Hinder, obstruct, hinder or postpone processes
- its likelihood of occurrence is associated with a probableness
Some types of risks include:
– Economics of the activity
– Environmental or surroundings
How RiskS Are Managed
Risk Management is all those coordinated actions to mitigate and control the risks to which organizations may be exposed. The objective is to outline a framework of action to reduce their consequences and reduce their probability of occurrence:
The effects or consequences of an uncontrollable event. Normally it must be valued economically.
It is the possibility of a fact occurring, may or may not be derived from the decisions of the company.
Risk Management Process
- Action against each risk
- Treatment plan