Risk management
Risk management is the identification, assessment and prioritization of risk (ISO 31000). Whether it is the identification, evaluation, prioritization or just paving the way for the smooth running of a business, it is imperative to know the risks and how to manage them. Organizations must be aware of the type of risk associated with their environment, such as:
- Inherent risks of operating, foreign exchange, credit.
- Political and socio-economic factors
- Supply-chain management
- Asset management issues
- Legal and Compliance
- Data and privacy - cyber security
- Staff and personnel issues
Risk management of any kind cannot be done without extensive research to evaluate risks, assess material weaknesses, and then put adequate mitigating controls.
This is not always possible given that most small-to-mid-sized firms do not have the resources or cannot re-allocate already strained resources for this task. Our customized risk management tools allow you to embed risk management into your everyday practices and processes. The key to risk management is to reap the benefits without leveraging your firm through unnecessary risks. It is also essential to understand that different organizations have different tolerance levels for risk. We at Avance understand this and will customize a risk management plan for you.
