Core Principles Of Risk Management MIT School Of Distance Education

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Core Principles Of Risk ManagementMITSDE

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About Us
The process of diagnosing various kinds of
financial risks in a business and the methods
adopted in order to prevent them is called Risk
management. Risk management is crucial for
organizations as it prevents miscellaneous
losses. When it comes to and hellip.
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Core Principles Of Risk Management

• Organizational Context
• There are several factors that influence an
  organizations working and result. It is not
  always necessary that all organizations may feel
  threatened by the same factors. If an
  Organization A gets affected by any change in the
  import duty, another organization B might not
  feel the risk. There might be different factors
  like social, societal, political or even
  technological that may affect an organization
  partially or fully.
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• Reporting
• Communication is the key to success in the
  case of risk management. The Information that is
  provided to the receiver must be authentic. The
  most significant facts must be selected and
  decisions should be made regarding them.
  Furthermore, the information must be accurate and
  should have a good scope.

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• Involvement of Stakeholders
• The stakeholders must be involved in every
  step of the risk management process. The
  stakeholders must be involved in every important
  decision that is made. In this way, the
  organization also gets to gain the trust of its
  stakeholders.
• Roles and Responsibilities
• The complete process of dealing with the
  risks must be open and accurate. Every person
  connected with the organization must know his/her
  role in the crucial process so as to avoid
  unnecessary confusion or miscommunication when
  the action is made.

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• Organizational Objectives
• One must keep in head the main objectives of
  the organization they work for while undertaking
  a risk situation. The person or team that is
  supposed to be dealing with the whole problem
  must be aware of the system that is to be
  followed along with the possession of the ability
  to think for a better and brighter future for the
  company.

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• Support Structure
• In order to have a successful business, one
  must have a team of hardworking as well as
  intelligent people. People who are enthusiastic
  but also know how to maintain tranquility while
  making important decisions are the ones who are
  really required.
• Review Cycle
• The review Cycle is basically divided into
  four stages- acknowledge, estimate, respond and
  review. You must be capable of recognizing the
  correct changes and eliminating those that are
  just vague.

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• Early Warning Indicators
• There must be a special team to keep a record
  of the symptoms that may turn into risks for the
  organization in the near future. At every stage,
  the team members must be in sync with each other
  so that even the slightest possible problem can
  be declined readily.
• Continual Improvement
• Continuous improvement is always the best
  option to maintain coordination with each other.
  This will also enhance the power to think of
  different alternatives, implement them and tackle
  risk situations.

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Conclusion

• Every organization emphasizes on taking the
  calculated risks but keeping a provision for
  the management of risks so as to minimize the
  losses.
• Thus, risk management plays a crucial role in
  every organization and it is interconnected to
  insurance.
• PGDM course in Risk Management Insurance at MIT
  School Of Distance Education educates about the
  legal, institutional and social ecosystem and
  prepares you to manage the risk efficaciously.
• Distance Management Courses gives you an upper
  edge over others thereby facilitating you to
  immediately get absorbed in the industry.

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