MANAGEMENT

Detailed explanation-1: -Risk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk has been identified, it is then easy to mitigate it.

Detailed explanation-2: -Risk management is important in an organisation because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit home.

Detailed explanation-3: -While the complete elimination of all risk is rarely possible, a risk avoidance strategy is designed to deflect as many threats as possible in order to avoid the costly and disruptive consequences of a damaging event. Risk avoidance is a specific type of approach to managing risk, requiring a methodical process.

Detailed explanation-4: -Proper risk management is a process that involves developing sound habits, following accepted safe practices and both establishing and implementing standard operating guidelines. Risk management is everyone’s responsibility.