Risk management specialists are financial managers that use specific training, skills and experience to identify possible risks that could result in lower cash flow and higher insurance rates for the business. These specialists assess risks and implement plans and strategies to minimize business losses.
Risk management function involves: identifying risks, assessing risk impact, forecasting future frequency and severity of losses, mitigating risks and finding risk mitigation solutions, creating plans, conducting cost-benefits analyses, and implementing programs for loss control and insurance.
- Business Risk
- Non-Business Risk
- Financial Risk
Risk Management Process:
- Identify and Prioritize Action
- Identify Threats
- Identify Vulnerabilities
- Analyze Controls and Variables
- Determine the Likelihood of an Incident, accident and event
- Assess the Impact a threat could have