Question

What should be included in a Risk Management Policy?

Answer 1

Risk Management is a process of analyzing and controlling the risks of any event or a project. There are a lot of risks involved in various stages of an event/project. There is always a risk of not getting the required results through the project so that a financial crisis may occur.  In business, anything that hinders the progress of the operation of the project will be considered as a potential risk.

1. Not scrupulously following the business model can lead to disastrous results.
2. Not complying with the guidelines can lead to legal issues which makes the business inoperative.
3. Not maintaining good operative conditions, not taking adequate safety measures can be detrimental to the organization's prospects.

Risk Management Policy is an exhaustive information about tackling risks, governing body for this purpose, scope and risk reports. A Risk Management policy contains following information:

Governing body is a group of professionals preparing and taking actions to mitigate the potential risks and also handling the risks in hand to maintain financial sustainability.

Scope of this policy indicates to whom this risk management policy applies.

Risk Management process will be given in the policy, which lists out the steps to be taken when a  risk is being faced by the organization.

Precautionary guidelines to be followed by everyone to avoid any kind of unnecessary risks.