Presentación Educación Superior

Teacher’s name: Vázquez Conde María Belén September 8, 2024

A3: What is Risk Management and Why is it important?5CM4

Public Accountant English Subject Complement

Team 6García Ramírez Rubi del Carmen Marroquín Pérez José ManuelOliva Pacheco JesúsPadilla Ortiz Marco AntonioSoriano Pérez Manuel Isaac

Instituto Politécnico Nacional Escuela Superior de Comercio y Administración Unidad Santo Tomás

References

Risk Management Framework

The functions of the risk manager

Definition

The importance of risk management

Why does it happen?

Phases of risk management

Types of risks

Contents

-Controlling threats

- Assesing

- Identifying

risk management

Definition

The risk managment is a process of well, managin risk, It involves:Risk management has long been associated with the use of market insurance to protect individuals and companies from various losses associated with accidents.

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The importance of risk management

Identify and control threats to digital assets and intellectual property risk the form of evaluate the risk in a company:- Establish contex- Identify and define potencial risk - Analysis risk- Evaluate risk- Mitigate risk- Monitor risk- Communicate and consult

Why does it happen?

This is because risk management, being a critical process for any organization, can face several challenges and problems.Risk management is essential to anticipate and prepare for adverse events that may affect the organization.

If not managed properly, problems can occur such as:

• Financial loss
• Loss of customers
• Loss of assets
• Legal problems
• Impact on the market

Remember that the process carries its own risks.

While it is impossible to protect against all threats, proper management will enable teams to minimize their likelihood and impact of risks, which requires large amounts of data, expertise, time and money.

Types of risks

The 4 main categories of risk are:

Operational risk

These risks are associated with the day-to-day operations of a business and can be caused by a lack of internal management, mismanagement, or technical failures.

Financial risk

This type of risk can be caused by a number of factors, including losses in the financial market, stock price movements, currency fluctuations, interest rate changes, or when customers don't pay on time.

Compliance risk

This type of risk is associated with failing to comply with laws, regulations, and industry standards.

Legal risk

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This type of risk is associated with legal issues and disputes.

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Performance riskThis type of risk is associated with a project failing to produce the expected results. It can be difficult to pinpoint the exact reason behind performance risk because it can result from the activities of several parties.

Risk identification is a fundamental phase in the risk management process. It helps decision-makers become aware of events or phenomena that cause uncertainty.

Occupational safety and healthThis type of risk is concerned with ensuring that employees are protected from injury and illness.

Other types of risk include:

Strategic riskThis type of risk is one of many that businesses face, along with operational, financial, and regulatory risks.

phases of risk management

Establishing the strategic context

Risk identification

Risk analysis

Risk assessment

Risk management policies

Monitoring and review

It is essential to establish monitoring indicators regarding the measures established for Risk Management and to verify that these are fulfilling their function..

The probability of occurrence of the risk and the impact of its consequences are established, through its qualification and evaluation.

The policies will be articulated in four different axes: risk transfer, risk retention or risk reduction.

The organization must systematically identify the risks to which it is subject, their causes and the possible effects.

This consists of comparing the results obtained from the Risk Analysis with the control measures identified, in order to establish priorities in the treatment of the risks

Consists of defining the basic parameters for Risk Management.

The functions of the risk manager.

Develop, implement and evaluate a risk culture in the organization.

Align and integrate risk management as part of the company's business strategy.

Prepare the organization's risk map, identifying, analyzing, evaluating, prioritizing and reporting the different internal and external risks.

All companies face risk; without risk, rewards are less likely. The flip side of this is that too much risk can lead to business failure. Risk management allows a balance to be struck between taking risks and reducing them.Effective risk management can add value to any organization. In particular, companies operating in the investment industry rely heavily on risk management as the foundation that allows them to withstand market crashes.

What Is Risk Management Framework (RMF)?

• What are the 4 main categories of risk? | Answers. (s. f.). https://www.6clicks.com/resources/answers/what-are-the-4-main-categories-of- risk#:~:text=The%204%20main%20categories%20of%20risk%20are%20financal%20risk%2C%20operational,financial%20performance%20of%20a%20business.

• Risk Management: History, Definition, and Critique Georges Dionne Obtein of google academyc https://onlinelibrary.wiley.com/doi/abs/10.1111/rmir.12016 Safeta Culture, Why risk management is important for organizations, https://safetyculture.com/es/temas/gestion-de-riesgos/

• UNIR Magazine. ( August 25th, 2021). What is risk manager?. UNIR Magazine. https://www.unir.net/empresa/revista/risk-manager/

• Narravo, F. ( June 20th , 2016). Basic Principles of Risk Management. INESEM Business school. https://www.inesem.es/revistadigital/gestion-integrada/principios-basicos-risk-management/
• RMF April 30, 2024 David Kindness(https://www.investopedia.com/articles/professionals/021915/risk-management-framework-rmf-overview.asp#:~:text=There%20are%20at%20least%20five,and%20monitoring%3B%20and%20risk%20governance.)

references

Bibliography

Risks can be assessed qualitatively or with a mathematical model.

The success of this process depends largely on the quality of the information obtained in the Identification phase and the type of method chosen to perform the analysis (quantitative or qualitative).

It is a practice of recognizing and recording occupational safety hazards and risks

For example, the scope and criteria for the rest of the process, something that must be done in all aspects of the environment in which the organization operates.