Any business comes up with an uncertainty.There are many risks involved in the decisions of investments and market expansion.Risk management is a means to identify , assess , control, avoid,minimize , and eliminate the potential risks that could hamper the business.The objective of risk management is to curb the risks and assure that the business goals are left undeflected.When an organization makes a decision on investments, it reveals itself to many financial risks.High inflation, recession, credit risk, accidents, natural causes and calamities,bankruptcy, volatility in capital markets, et al ,are what can add upto financial risks.Henceforth, to avoid, minimize, and control such financial risks, fund mangers and investors are appointed to take care of such risks and practice risk management.If risks are not detected adequately, or appropriate actions are not taken , it could lead to severe consequences for companies as well as individuals.
Mostly, risk sources are identified in human factor variables, mental states and decision making, and others could be of infrastructural or technological variables.
To cite an example, the recession of 2008 , that the world faced and suffered was predominantly caused by the loose credit risk management of the investors and financial institutions.
Generally, an investment in stocks and equity is considered as a risky affair, while on the other hand, fixed deposit is considered as a less risky venture.In recent years, it has been observed that there is an immense demand of managers to handle risk management in organizations.Industry and government regulatory bodies, as well as investors, has undertaken to peruse and inspect companies' risk management policies.
Mostly, risk sources are identified in human factor variables, mental states and decision making, and others could be of infrastructural or technological variables.
To cite an example, the recession of 2008 , that the world faced and suffered was predominantly caused by the loose credit risk management of the investors and financial institutions.
Generally, an investment in stocks and equity is considered as a risky affair, while on the other hand, fixed deposit is considered as a less risky venture.In recent years, it has been observed that there is an immense demand of managers to handle risk management in organizations.Industry and government regulatory bodies, as well as investors, has undertaken to peruse and inspect companies' risk management policies.
The success of any company does not only depends upon the growth and profits, but also the ability of the firm to tackle and manage potential risks. COMzen Technologies believes that nothing great can be achieved without taking risks, it's okay to fail while taking risk but not trying and simply believing that it cannot be done is not fair enough.
As some one said, The glory is not in never falling but getting up every time when fallen!!
No comments:
Post a Comment