Assessing Risk Management Essay

10323 WordsSep 13, 201242 Pages
Our current management team has inadequate risk management training which may lead to uninformed, risky business decisions. Management is having difficulty identifying and managing the risks associated with daily operations and new business ventures. To address this problem we were tasked with researching a number of different risk management programs currently available. After analyzing the different programs we were able to identify a risk management program that would fit the company’s needs. In order to more effectively manage the business risks associated with competing in the mortgage industry an enterprise risk management program with aspects of positive risk management should be implemented. Our research has lead us to the conclusion that a hybrid risk management program would allow our company to identify and manage internal and external risks, identify risks that should be taken, decrease our overall risk level, and improve profitability. The following steps should be taken when implementing an enterprise/positive risk management program: 1. Conduct an enterprise risk assessment. This organization-wide assessment would help us identify the critical risks our company faces and the desired level of risk management we hope to achieve. * Determine organization’s risk appetite * Conduct risk personality testing * Assess how current risks are being managed * Determine desired level of risk management 2. Articulate the risk management vision. * Determine the capabilities needed to manage our organization’s key risks * Set policies, processes, etc. that reflect management’s attitude towards risk 3. Advance the risk management capability. * Identify one or two main risks to be managed * Implement risk management in a small division of the company 4. Evaluate the existing ERM infrastructure. * Analyze

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