Page 14 - Risk Management Bulletin February 2024

RMAI BULLETIN FEBRUARY 2024

Biggest Risk

management

failure- Causes,

Remedy, and

Lessons Stuti Banka

Introduction: risk mitigation phase to reduce or eliminate the likeli-
hood or impact of identified hazards. Finally, during the
Risk management is the process of identifying, evalu-
risk monitoring phase, the effectiveness of risk mitiga-
ating, and controlling potential risks that may affect an
tion techniques is assessed and adjustments are made
organization's goals. It involves evaluating the likeli-
as needed.
hood and potential impact of various risks and taking
proactive measures to minimize or mitigate them.
Effective risk management can help organizations pro-
tect themselves from potential losses or adverse ef-
The aim of risk management is to ensure that the or-
fects, as well as ensure that they can continue to op-
ganization is prepared to manage potential risks and
minimize the negative impact they may have on its erate effectively in the face of unforeseen events.
operations, finances, reputation or stakeholders. This
includes various strategies such as risk identification, Definition of Risk Management
risk analysis, risk mitigation, and risk monitoring and Risk management in finance refers to the activity of
reporting. anticipating potential dangers, analysing them and
implementing preventive measures to reduce/limit
Risk management is a key function in many industries, risk.
including finance, healthcare, engineering and many
others. It is also an essential part of project manage- Risk management is defined by Col. SO. Modelas: "A
ment, helping to ensure that projects are delivered on process, carried out by the entity's board of directors,
time, within budget and without major disruptions or management and other personnel, applied within the
setbacks. framework of the strategy and across the entire en-
Strategies are designed and implemented during the terprise, designed to identify potential events that may

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