How important is controlling of Risk is to the company or businesses?

Mataracy

Valued Contributor
What is Risk? Risk can be describe as uncertainty occurrence of an even.

It is the probability of may be an even is going to occurs or not.

Though low risk is more acceptable than high risks. Though it doesn't mean that all risk should be avoided.
Rather the risk is associated with returns so therefore the higher the risk the higher the returns will be .

Risk can not be well control without the help of good manager.
Risk manager is appointed by a company or an entity by given a responsibility for all aspects of risk.

It might be appointed by insurance,financial risk or treasury risk. A risk manager is not a line manager and is not directly responsible for risk management.
But it's role is to provide information, assistance and advice, and to improve risk awareness within the entity and encourage the adoption of sound risk management practices.

How effective risk managers?
The effectiveness of risk managers mostly depend on the support that the risk manager receives from the board of the company or senior management.

The specific role of the risk manager might give him authority to instruct the line manager what to do.

The prestige a risk manager receive depend on the amount of support he receives from the board and senior management.

Without the help of risk manager in the company there is possibility that the company may enter in to problem in the future.

How important is controlling of risk in the company?
 

eldavis

New member
It is quit true that there are some level of risk in any business venture, but its wise if you actually calculate your risk. Controlling risk is very important in a business, because it could lead to a hugh loss in the business or even the end of the business.
 
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