Risk Management

Risk Management in UAE

Risk management occurs everywhere in the financial world. Whatever may be the industry you operate in, you need to make sure that execution and maintenance of your project is safe. This includes operations, business activities which includes trade. There are multiple types of risks such as compliance risk, legal risk, strategic risk, operational risk, reputational risk, etc.

Identifying, evaluating, and prioritization of risk which is followed by using resources to minimize and control the threat that can have an enormous impact on the company and to maximize the opportunity that arise is risk management. There are several types of risk which includes the uncertainty in the financial world. Business Risk management is a subset of risk management used to evaluate the business risks involved if any changes occur in the business operations, systems, and process. It identifies, prioritizes, and addresses the risk to minimize penalties from unexpected incidents, by keeping them on track. Risk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk has been identified, it is then easy to mitigate it. In addition, risk management provides a business with a basis upon which it can undertake sound decision-making.

Risk Management Is A Five-Step Process:

• Step 1: Identify the risk
• Step 2: Assess the risk.
• Step 3: Evaluate the risk assessment.
• Step 4: Treat and control the risk.
• Step 5: Monitor and review risk.