Risk Management Plan For A Company

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Risk Management The process that helps project managers follow when they need to calculate, identify, and manage risk in a company is defined as Risk Management. When a company faces risk, risk management would be the ideal solution to use that to solve the known and unknown risks. Risk management plans should be ready to help reduce and prevent those risks because most risks in a company are uncertain. When a company is facing risks that are uncertain, these risks come up very fast and they could be potentially harmful. They should be treated right away. Of course the work must be performed first as long as they are not of sever threat. Perform the work as planned keeping in mind those uncertain risks. Some risk management plans requires…show more content…
This can ensure that employees are focused on their jobs and not getting distracted. Another prevention method could be moving dangerous equipment’s to a different side of the factory where special safety precautions are implemented. Performing necessary maintenance on factory equipment can also reduce the likelihood of an accident. (Larcker and Miller, 2014). Having regular safety meeting with employees can reduce factory accidents. Managers have to be involved to make sure employees are safe at the workplace. These are some of the precautions we can take to prevent the likelihood of a risk. There are prevention methods available for companies to use, these are: risk management techniques which include risk avoidance, loss control, risk retention, and risk transfer, risk mitigation plan, risk analysis, mitigation plan implementation, risk assessment table, and risk matrix. Areas of Risk Management There are many areas to focus on when it comes to risk management, depending on your company’s infrastructure; risk management is going to be different. The areas of risk management will include compliance risks, financial risks, operational risks, and strategic risks. Compliance risks will involve industry standards and regulatory and statuary standards. Financial risks will include loss of revenues, exchange rate losses, purchasing practices, performance and schedule, and lawsuits for facility injuries.
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