Organizations have practiced various pieces of what has come to be known as business risk management. Identifying and prioritizing risks, either with foresight or after a disaster, has long been a standard management action. This article can provide you help in finding the best risk management software and risk register software.
What has changed, starting very close to the close of the last century, is treating the huge selection of risks in a holistic fashion, and elevating risk management to a senior management responsibility. Although practices haven't improved uniformly through different businesses and different associations, the overall evolution toward ERM can be characterized by several driving forces.
What is Risk Management?
Risk management is only a practice of systematically selecting cost-effective strategies for minimizing the impact of threat realization into the organization. All risks can never be completely prevented or mitigated simply due to fiscal and practical limitations. Therefore all organizations need to accept some amount of residual risks.
Whereas risk management has been pre-emptive, business continuity planning (BCP) was devised to take care of the consequences of recognized residual risks. The requirement to have BCP in position arises because very unlikely events will happen if given sufficient time.
Risk management and BCP are often mistakenly seen as rivals or overlapping practices. In reality, these processes are so closely tied together that such separation looks artificial. By way of instance, the risk management process generates significant inputs for the BCP (assets, impact assessments, cost estimates etc).
Financial risk management is the practice of creating value in a company using financial instruments to manage exposure to risk. Similar to overall risk management, financial risk management requires identifying the sources of risk, measuring risk, and strategies to address them.