Benefits & Strategies Implemented for Risk Management

Benefits & Strategies Implemented for Risk Management

HIM is the best management college in West Bengal. The management college also identified many risks. So it is the process to identify and control threats in an organization’s earnings. These risks include legal liabilities, accidents, natural disasters, and financial uncertainty. Benefits of risk management include:

•              For this the work environment is safe for all the staff and customers.

•              It increases the stability of business operations.

•              It protects the people involved here from potential harm.

•              It also helps to establish the organization’s insurance needs.

Risk management approaches

The company after identified the risks there are several risk management processes are implemented. The strategies are:

•              Risk avoidance: This strategy is designed to reduce many threats to avoid the costly and disorderly consequences of a damaging event.

•              Risk reduction: Sometimes companies reduced certain risks of a project by reducing its scope.

•              Risk sharing: Risks are shared with all the departments and the participant of the company project and it is also shared with a third party such as a vendor.

•              Risk retaining: Sometimes companies decide to keep the risk and deal with any potential fallout. A certain risk is retained if a project’s preceded profit is greater than the costs of its potential risk.

Risk management examples

One of the examples of risk management is opening a new location where a business identifying risks are found. Thus they can diminish risks by choosing a location where there is low competition and a lot of crowd in the area.

Another example is an outdoor amusement park. Their business is completely weather-dependent. So when there is a bad weather condition, to reduce the risks of a large financial hit the park compatibly spend low and build up cash reserves.

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