Dive Into the New Age of Analytics

Core components of Risk Management include:

Risk Identification:

Acknowledge and document all potential risks, including market, credit, operational and strategic.

Risk Assessment:

Evaluate the likelihood and impact of each identified risk and categorize them.

Risk Strategy:

Develop a plan to manage risks based on assessment. Common strategies include:

Risk Avoidance: Evaluating activities that carry a potential high level of risk.
Risk Reduction/Mitigation: Implementing controls and strategies to minimize the likelihood or impact of an identified risk.
Risk Transfer: Shifting risk to a third party, typically through insurance, debt or contracts.
Risk Retention: Accepting risk and planning to absorb any potential losses. Most often utilized for low-impact risks.

Risk Assessment: Completion of a short assessment to identify high-priority risks and implement fixes for any gaps.

Establish framework: Build a clear, simple framework for managing risk that aligns with the Businesses overall strategy and "Risk Appetite".

Implementation of Controls: Put in place controls and monitoring systems to protect against potential losses.

Protect Value: Protection of the Businesses financial value, growth and reputation.