Techniques and benefits of risk management
Effective risk management involves skillful assessment, which is why there are techniques and tools that provide a broader context and a better view of an issue. These include checklists, cause-and-effect diagrams, assumption analyses, group techniques (e.g., brainstorming), probability trees, etc. An entrepreneur who has decided to implement a risk management system can combine the above techniques to make the risk management assessment as effective and reliable as possible.
A company that has successfully implemented and maintained a risk management system can expect a number of benefits, including:
- Greater likelihood of achieving desired objectives
- Greater control over the identification of business opportunities and threats
- Minimization of losses
- Increased effectiveness and efficiency of conducted activities in the company
- More active management of the company
- Reduction of costs
- Maximization of profits
- Reduction of uncertainty
- Possibility of implementing long-term objectives
- Increased enterprise security.
Video 3: Benefits of risk management