Many people incorrectly in response to financial risk. Whereas financial risk is just one component of business risk, in addition to project risk, operational risk, market risk and risks associated with the regulation. Integrated risk management is a process by which various risks are identified, measured and controlled throughout the organization. Likelihood of risks and their consequences for the business are two fundamental things to be identified and measured.
Through proper management of any strategic decision is taken is always based on valid and reliable information. Thus the decision was expected to effectively anticipate events in the future and reduce uncertainties. But unfortunately,
Every industry has its own emphasis on the risks to be controlled. In an integrated risk management, risk dominant serve as the primary reference. For example, in the financial industry and banking, risk management is more focused on financial aspects without ignoring other aspects of risk.
The next question is how technically integrated risk management?
Good process relating to the management of risk management is to do.
Sanalisa accurately both the internal and external environment of the company. Results of analysis then followed up with the identification and classification are clear, specific, and thorough than any risks, both from the aspect of operational, market, financial, project, or regulation.
Many companies can identify risks well so knew exactly what the risks to be faced in its business activity, but wrong in anticipation. The problem that often arises is in determining the priority of handling and determining if the risk tolerance limits can not be managed entirely stretcher. This tolerance limit will determine how much of a risk is acceptable (acceptable). Here the policy of management and leadership of companies plays an important role in making decisions. Company management determined that the company will avoid any such high-risk activity. On the other hand the possibilities for this type of low risk and have little impact, management can only receive it within the limits of tolerance has been determined. To risk the possibility of a small but big impact, the company usually make transfer of the risks it faces to the other parties, such as with insurance, but the company remains responsible for minimizing the likelihood of those risks.
Of course the risk management policy must be preceded by a thorough analysis by considering various aspects, especially related to the cost & benefits will be obtained and borne by the company. Here the functions of planning, monitoring, and control over the policies to be taken against the risk will be very decisive.
Is no less important in an integrated risk management is the aspect of control. The leaders of the organization is required to pay serious attention in this regard because the control is often the weakest point in the risk management practices. Control that goes well, supported by learning to make an integrated risk management as a process with continuous improvement. In return is a significant performance improvement organization.
