Understanding Risk Management

Having become more and more indispensable in the management of the company, risk management is now becoming the cornerstone of any business model. In principle, it brings together all procedures aimed at identifying and assessing the risks related to the activities of the organization to improve company performance.

Risk concept

By definition, a risk is considered the probability of an event and its consequences. It is an element that can negatively affect the objectives that the company has set. In practice, risk management consists of identifying points of vulnerability, evaluating the risks incurred, and deducing any financial repercussions. Cane Bay Partners can help your business achieve this.

Promoting good risk management is important

This type of management focuses on the prevention of risks related to the company’s activities, be they strategic, operational, or financial. It also involves putting in place strategies to deal with these risks. Such an approach consists of monitoring the effectiveness of quality and safety systems. There are various missions, the main ones being:

  • Promoting the development of risk prevention systems in the company (security of property, people, information, safeguarding know-how, environmental, social, financial, image risks, etc.)
  • Implementing active plans to improve the company’s performance
  • Developing a global sustainable development approach
  • Aligning the company’s strategy with its risk control
  • Preparing the company and its staff to manage crisis situations according to the activity carried out

Also, risk management takes on a whole new dimension if the company embarks on a new project. In this case, the decision-makers will expect an in-depth study on the feasibility of the project and the risks involved in carrying it out from the Risk Manager.

A position of high responsibility

The manager of any risk management system must have several skills at his or her disposal. To be effective, they must understand analysis and synthesis while staying methodical and perseverant. A true mediator between the various departments of the company, a Risk Manager must also have interpersonal skills.

The risk manager is also responsible for raising staff awareness on the prevention systems. Their advice is highly sought after in the planning of jobs and skills. On the management side, their work is essential to make decisions.