All the organizations aim to run risk-free operations. However, the truth is that no matter how careful they are, there is always a danger of exposure to unexpected and unplanned threats. Implementing a risk management policy throughout an organization is the best way of identifying and managing these threats before they become costly problems.
Embedding such a policy within daily operations also helps in making well- informed choices as decision-makers better understand and evaluate the wider impact their actions have.
Risk management techniques, Risk management software, Risk Management people, etc all have to be utilized effectively to result into efficient risk management for the whole organization. Risk management may be for assets, liabilities, people, interest rates, open positions, collection cycle, purchase and stock warehousing, foreign currency risk, operational risk, etc.