Risk management

As an organization, companies generally have a goal in implementing risk management. The objectives include: reduce spending, preventing the company from failure, increase corporate profits, lower production costs and so on.

What is the meaning of Risk Management?
Management risk is the risk management process that includes identification, evaluation and control risks that may threaten the continuity of business or enterprise activity.

What are the stages in risk management?
The stages through which the company in implementing risk management is to identify in advance the risks that may be experienced by the company, after identifying it conducted an evaluation of each risk in terms of severity (risk value) and frequency.

The last stage is risk control. In this phase of risk control that is divided into two physical controls (risk eliminated, minimized risk) and financial control (retained risks, the risk is transferred).
Eliminating risk means eliminating all possibility of such damages in a car driving in the wet season, limited to a maximum vehicle speed of 60 km / hour.
Minimizing the risk to do with efforts to minimize such losses in production, the chances of product failure can be reduced by quality control (quality control).
Own restrain means to bear the risk of the whole or part of the risk, for example by setting up reserves in the company to face the losses that would occur (retention).
While the transfer / transfer of risk can be done by moving the losses / risks that may occur to other parties, such as insurance companies.

• Risk Management