Risk Management

Every organisation is exposed to a different kind of risk, the main issue is how these risks are managed, effective management will lead to an increase in profitability of the organisation and reduce loss but lack of effective management will affect the growth of the organisation.

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According to E-Careers Source Woolworths company fall because they could not manage the risk that comes with finances and this cost about 27,000 to lose their jobs not only that the organisation was dissolved at the end of the day.

Risk Management starts from the discovery of the risk, prioritising the risk and the potential impact on the organisation and then using the resource available or acquiring more resources to prevent such risk from materialize.

So how can you handle risk in your organisation?

Aviod

The best way is to avoid the risk in the first place which means putting in place good security measures and control systems to prevent the risk from occurring.

Reduce

The next way will be to mitigate the risk, there are some situations whereby some risk materialize even with the security measure still put in place at this time we can mitigate it to reduce the impact on the organisation. This can be carryout by taking the right action at the right time.

Transfer

Insurance is another way of mitigating risk, this involves transferring the impact of the risk to another body(insurance company). So is very important for every organisation to register under an insurance company to safeguard themselves from the impact of risk.

In conclusion, effective management of risk will help to reduce organisation lost thereby increasing their profit.

Thanks for reading.