Risk Management provides a framework that allows a business to identify, assess, manage and mitigate risk exposure, leading to potential benefits such as:
- Reduced losses through process improvements developed by the business;
- Increased risk awareness through improved communication, by the use of a consistent risk language and approach to risk identification and reporting;
- Prioritisation of business risks to those that matter;
- Provision of a cost effective action plans for the monitoring and management of significant risks;
- An aid to strategic and business planning in identifying new business opportunities and threats.
The use of risk management will greatly improve the transparency of how an organisation operates, provides a roadmap to achieve strategic goals and objectives and provides assurance over the management of risks.