One of the functions of a corporate governing body is to identify, address, and prevent potential risks to the company. There are a number of things that can pose a risk to a business and being able to manage those risks is part of a comprehensive enterprise risk management strategy.
Enterprise Risk Management is a business strategy designed to identify, assess, and prepare for any dangers, hazards, and other potentials for disaster that may affect an organization's operations and objectives.
Steps for assessing risks
- identify potential risks
- analyze the risks
- evaluate the risks
- address the risks
- review the risks
Risk management is a complicated job that requires multiple stakeholders and involvement from different departments – because of this, most companies will employ a third-party risk management consulting agency like Rede.