Risk Management Is Everyone's Responsibility

1868 WordsAug 27, 20168 Pages
The statement “risk management is everyone’s responsibility” has truth behinds its meaning and it is important for the management of the organization to stress the importance of everyone working together to help reduce and mitigate the risks. Risk management is a process that promotes the company’s goals by identifying, addressing, and overcoming the risks associated with reaching those goals and it also helps identify the overall impact that these risks could have on the company as a whole (Makomaski, 2008). It is important that the organization identify any potential or possible risk to their superior immediately, but many companies struggle with how to implement a successful risk management system. With that being said, “The purpose of risk management is to gain an understanding of a risk’s nature, its causes, potential impacts and likelihood, and to determine whether additional controls are necessary so that it is acceptable to the organization”(as cited in Lyon & Popov, 2016, p. 40). Risk management is a concept that should be implemented within an organization to ensure that the risks do not overshadow or interrupt the success and profitability of the company. A risk management program is very important to implement because it will help the company recognize and address the risks that occur and then the company will have the knowledge and skills to view the risk as a strategic advantage (Bowling, Julien, & Rieger, 2003). However, getting everyone on board with
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