Page 15 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

Role of Risk

Management

professionals in

Emerging

Economies Yash Agarwal

Risk Management 4. Treatment of the risk: After conducting an analy-

Risk management is the process of identifying, assess- sis of the risks, the next step is to formulate a
ing, and controlling financial, legal, strategic, and se- strategy for treating or mitigating those risks. This
curity risks to an organization's capital and earnings. could mean completely avoiding the risk, transfer-
ring it to another party, reducing it, or accepting
Risk Management Process: it while at the same time taking steps to mitigate
the negative effects of it.
The process of risk management is a structured approach
that is utilised to identify, assess, and mitigate risks that 5. Monitoring and evaluation of risks: as a final step,
may have an impact on the operations or projects of an the risk management process should include
monitoring and evaluation of risks on an ongoing
organisation. The following is a list of the typical steps basis. This is to ensure that the risk treatment plan
involved in the process of risk management: is effective and that any newly emerging risks are
1. During this phase of the process, you will be quickly recognised and mitigated.
tasked with identifying any and all possible threats
that may have an effect on the company or the Introduction
project. This can be accomplished through the
process of brainstorming, carrying out a risk as- Professionals in the field of risk management are
sessment, or reviewing data from the past. tasked with the responsibility of identifying, analysing
and mitigating risks that may have an effect on the
2. Analyzing the risks is the next step after figuring operations, financial performance, or reputation of an
out what those risks are, which is the first step. organization. In economies that are still developing,
This includes determining the likelihood that the the roles that these professionals play in assisting
risk will materialise, as well as the potential con- businesses in navigating a landscape that is both
sequences that it may have for the organisation or complex and constantly shifting are of the utmost
the project. importance. In this essay, we will investigate the role
3. Evaluation of the risks Following the completion of of risk management professionals in developing
the risk analysis, the following step is to evaluate economies, focusing on the challenges these
the risks. This involves determining which risks are professionals face as well as the strategies they use to
the most significant and require the most attention. effectively manage risk.

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