ERM-Wiki - Week 4 responses

Link: https://www.investopedia.com/articles/financial-theory/09/risk-management-business.asp I found the above URL is helpful in evaluating Risk Analysis in business by tools and methods that I want to discuss here. Operating a business is associated with various kinds of risks. Of these few of them might be effective threats that can damage a business while others can create severe bruise which might be cost-effective or time taking to reform. Few of the risks associated are physical risks, Unsafe substantial risks, location risks, human risks, technology risks, strategic risks. So the likelihood of the above-mentioned risks may be high, medium or low and at the same time it is highly impossible for us to detect the risks in advance and act accordingly rather we can plan ahead to manage the risks with proposed methods. Few of the above risks are materialistic, in this case, we can best opt insurance in case of natural disasters like fire and flood. Insurance also applies to product liabilities as well. Impeding many risks from happening to occur in any business is best accomplished through employee training, background checks, security checks, machinery care, and preserving the physical campus. One, a responsible employee with managerial privileges must be delegated to deal in supervising risks. One efficient way is employees are given good training sessions in educating them to act in situations of risks associating with the organization. Also, they are given prior information about the necessary actions to be carried out in case of emergency situation. All the proposed plans should be reviewed timely in order to be up to date. Also, it is always better to design a plan by estimating it in advance rather than thinking to handle a risk after it occurs. This URL gave a proper understanding of handling risks which is applicable to all businesses irrespective of the sector.