Question

Benefits of Risk management

1. Supports strategic and business planning
2. Enhances communication between faculties and departments
3. Support effective use of resources
4. Promotes continual improvement
5. Helps focus internal audit programme
6. Fewer shocks and unwelcome surprises
7. Reassures stakeholders
8. Quick grasp of new opportunities

Please help me to explain this benefit of risk management and other name of saying the same thing?

Answer 1

Note: Since we only answer up to 4 sub-parts, as per policy.

Risk management is define as a systematic approach of identification and analysis of risks factors to minimize the impact of any uncertain events to maximize the utilization of resources and investment opportunities.

1. Supports strategic and business planning : The purpose of risk management is to reduce the ill effect of un-desirable economic activities on expected return from business activities. The major aspect of risk management to control the un-desirable factors , which may impact the perfromance of business.

2. Enhances communication between faculties and departments: Risk management is a tool to control all the uncertain factors and misunderstanding among different departments. Such misunderstanding can be reduce by regular communication between faculties and departments

3. Support effective use of resources: In process of risk management , identification and analysis of risks factors to minimize the impact of any uncertain events to maximize the utilization of resources and investment to achieve the desired goal.

4. Promotes continual improvement: Risk management is a continuous process to approach the factors to reduce the ill effect , during the process of control of risk the other factors will improve bit by bit.