It is the job of the organization to do a thorough scan of the various risks that an organization faces during this time. The risk appetite of all stakeholders needs to be matched with the probable outcomes of different risk levels. This framework has to be developed after due consultation by all stakeholders. ![]() The primary purpose of a risk policy is to ensure that the organization has a commonly agreed-upon risk management framework in place. This article explains what a risk management policy is as well as the different steps that need to be taken to draw up a risk management policy. Since an organization is made up of several stakeholders, it is important for all those stakeholders to get aligned on the same path so that the risk management policy can be drawn up. It can be considered to be like a constitution since all decisions related to the risk management practices in any company emanate from this document. This is a basic document, which is drawn up when the risk management policy of a company is being put into place. ![]() Just like the vision and mission of any company, its risk management policy is also unique. Practices that may be considered acceptable in one organization may not be considered acceptable in another organization. The policy of risk management is unique to every organization.
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