How can risk management help companies

Objectives and benefits of risk management

Risk management is the responsibility of corporate management. Not only is it useful and important, but it also helps improve the performance and efficiency of an organization.

In this way, security requirements can be implemented, imponderables can be better assessed or even avoided and, as a result, the achievement of goals by organizations and systems can be ensured.

The aim of any risk management is to ensure that companies address their most important risks

  • recognize and find
  • evaluate
  • deal with
  • monitor
  • can.

The greatest risks

If a company manages to keep its risks under control, it has to bear significantly smaller residual risks. In addition, a company can concentrate on the "important" and not on the "urgent", which means that it sometimes gains greater scope for action.

What is a risk and how can it be captured?

Risks are the result of human action and not a product of chance. Those who know them well can keep them within limits or avoid them altogether.

Risk is understood to mean events or actions that can lead to a deviation from the defined goals or the implementation of the company strategy. Positive deviations are generally referred to as an opportunity and negative deviations as a risk. Opportunities are often taken into account in the strategy process. Negative deviations (risks) are dealt with in the risk management process.

Important to know: Almost all risks arise from human action and can thus be influenced. Because so-called fate has nothing to do with risks. Forces of nature also sometimes cause damage. But there are ways and measures to protect yourself against it - and above all to be prepared for the consequences.