Corporate Risk Management Essay Example | Topics and Well Written Essays - 2250 words

Corporate Risk Management - Essay ExampleUnfortunately such(prenominal) high degree of essays can let negative impact on the profitability as well as to the future success of the organizations. So to protect from such bad consequences it is essential for such organization as currently as possible to find an appropriate solution so that they could handle or manage risks in better way which in otherwise could bring catastrophe to them. So a desirable solution is through applying appropriate sets of procedures or policies at proper intervals. Risk instruction is one such telling strategy that to a great extent can minimize or reduce various types of risks that an organization has to face while carrying kayoed its operations. By adopting such strategy an organization can ensure its better success and growth in the future. Viewing this importance the paper attempts to describe what is risk trouble or risk management decisions, the direct and indirect costs and benefits of risk mana gement decisions to an organization and how they can be measured.Risk management or risk management decisions are a logical process that aims at eliminating or minimizing the level of risk pertained to any business operations. In other words it can be told as a series of process that comprises of identifying, analyzing, and implementing necessary steps so as to minimize or eliminate the exposures to risk of loss that are to be faced by an organization. The practice of risk management makes use of number of tools and techniques, and also the concept of indemnity, in order to manage the different types of risks. The duty of carrying out the process of risk management is entrusted to the concerned discussion section of corporate risk management, who firstly identifies what are the various potential sources that cause to trouble, after identifying the corporate risk managers analyzes each of the sources carefully and then finally after analyzing they take precautionary measures or ste ps to overcome from such exposure of losses. The term risk management is known to be a relatively a recent evolution of the concept to insurance management (Sullivan, 2009, P. 452). The concept risk management that comprises of broader scope of activities and responsibilities than what the insurance management actually dealt with. The uses of Risk management was initially applied by the organizations to protect from various physical threats which occurs while carrying out their operations such as theft, fire, flood, legal liability, disability, employee injuries, car accidents, and many which otherwise took number of years to protect themselves from such risks and in turn which would bring barriers to their day-to-day operations and profitability. It was seen as the twentieth century ended the activities of risk management were much more expanded to the areas of financial risks such as interest rates, exchange rates, and now e-Commerce. As mentioned forward risk management as a pro cess risk management involves several series of steps where the concerned corporate risk management department of an organization identifies, analyzes, treats and monitors the risks which are involved in carry out their any business operations (Culp, 2001). These entire processes were carried out by the organizatio