The essence of risk management policy in accordance with ISO includes the following aspects:
Justification of the need for effective risk management.
The role of risk management policy in the structure of other policies adopted in the organization.
Establishing reporting procedures and defining areas of responsibility in the area of risk management.
Regulation of conflict resolution procedures.
Providing access to resources to support those responsible for risk management.
Methodology for assessing hong kong email list and reporting on the effectiveness of the risk management process.
Commitment to regularly updating both the policy itself and the entire risk management system.
A striking example of risk management policy is the document approved by Sberbank of Russia in February 2012.
Frequently Asked Questions about Financial Risk Management
Risk is an integral part of business activity. Effective management of a company's financial risks is a critical aspect of a successful business.
Is it possible to take into account all financial risks in advance?
No, regardless of the measures taken, it is impossible to accurately predict all risks. About once every 10 years, a danger appears that can lead the company to bankruptcy. That is why every organization needs to develop a risk management strategy and form reserves from net profit.
How to ensure management of personal economic and financial risks?
Personal risk management is a set of decisions and actions aimed at mitigating the financial consequences of negative events in a particular person’s life. Effective decision-making in this area requires skills in identifying, measuring and prioritizing risks, as well as wisely choosing management methods.
How to determine the cost of insurance when managing project financial risks?
It is necessary to agree on the terms of insurance, including the amount of insurance premiums and deductibles, and also to evaluate the effectiveness of this loss management method using the formula:
Insurance cost = (SV-SF)/SP ≤ UR
Where:
SV – amount of compensation; SF – amount of insurance deductible; SP – sum of all insurance payments; UR – risk level.