RISK MANAGEMENT

• Class:

Risk Management English Complement

• Assignament:

“A3 - What is Risk Management and Why is it important?"

• Group:

5CM4

• Names:

-Barona Mendoza Porfirio 100% -Ley Sánchez Daniela 100% -Quijano Cedillo Carolina 100% -Sanchez Velazquez Veronica Sofia 100%

• Teacher:

María Belén Vázquez Conde

What is risk management? And why is it important?

Risk management is a process that identifies, evaluates and controls the threats to an organization in order to turn them into profits. Risk management aims to protect an organization from potential losses or threats to its ongoing operation. This may include financial losses, damage to the organization's reputation.

¿What is risk management ?

All organizations, regardless of size, should prioritize robust risk management. This is because risk management not only helps to proactively identify and control threats and vulnerabilities that could negatively impact the organization, but also allows for effective preventive and contingency strategies to be established to mitigate their impact.

Some types of risks that may affect an organization are:Financial: related to the company's financial transactions.Environmental: which may occur in natural or social environments.Legal: arising from laws or regulations that may affect labor or commercial activity.

+ info

By implementing a comprehensive risk management strategy, companies can protect themselves from these various dangers. Furthermore, this preparation ensures that they are well prepared to respond effectively to any unforeseen situation, thus strengthening their adaptability and resilience to the challenges of today's business environment.

The importance of risk management processes refers to discovering weaknesses in the methods used in product development through a structured approach so that timely mitigation actions are initiated to avoid the risk, transfer the risk, reduce the probability of the risk or reduce the impact of the risk.

Importance of risk managemet

Risk identification is studying a situation to realize what could go wrong in the product design and development project at any given point of time during the project. Sources of risk and potential consequences need to be identified, before they can be acted upon to mitigate

It is composed of seven iterative sub-processes

• establishing the context of risk
• dentifying risks

• analysing risks
• evaluating risks
• communication and consultation across stakeholders
• monitoring and controlling risk events.

The risks that modern organizations face have grown more complex, fueled by the rapid pace of globalization. New risks are constantly emerging, often related to and generated by the now-pervasive use of digital technology. Climate change has been dubbed a "threat multiplier" by risk experts.

A recent external risk that initially manifested itself as a supply chain issue at many companies -- the COVID-19 pandemic -- quickly evolved into an existential threat, affecting the health and safety of employees, the means of doing business, the ability to interact with customers and corporate reputations.

Thanks!

Got an idea?

Use this space to add awesome interactivity. Include text, images, videos, tables, PDFs... even interactive questions!Premium tip: Get information on how your audience interacts with your creation:

• Visit the Analytics settings;
• Activate user tracking;
• Let the communication flow!