Risk Management

Types of risk vary from business to business, but preparing a risk management plan involves a common process. Your risk management plan should detail your strategy for dealing with risks specific to your business. The main categories of risk to consider are: strategic, for example a competitor coming on to the market compliance, for example the introduction of new health and safety legislation financial, for example non-payment by a customer or increased interest charges on a business loan operational, for example the breakdown or theft of key equipment These categories are not rigid and some parts of your business may fall into more than one category. The risks attached to data protection, for example, could be considered when reviewing your operations or your business' compliance. Linkon Everent represents a significant evolution beyond previous approaches to risk management in that it: Encompasses all areas of organizational exposure to risk (financial, operational, reporting, compliance, governance, strategic, reputational, etc.); Prioritizes and manages those exposures as an interrelated risk portfolio rather than as individual “silos”; Evaluates the risk portfolio in the context of all significant internal and external environments, systems, circumstances, and stakeholders; Recognizes that individual risks across the organization are interrelated and can create a combined exposure that differs from the sum of the individual risks; Provides a structured process for the management of all risks, whether those risks are primarily quantitative or qualitative in nature; Views the effective management of risk as a competitive advantage; and Seeks to embed risk management as a component in all critical decisions throughout the organization.