Corporate Risk Assessment for Business Safety
The process and strategy of discovering, analyzing, and controlling threats to an organization's capital and revenues is known as risk assessment. Financial uncertainties, legal obligations, technical challenges, strategic management failures, accidents, and natural disasters are all potential causes of risk. A comprehensive risk assessment program allows a company to analyze all of the hazards that it confronts. Risk assessment and management also looks at the link between risks and the potential for them to into an organization's strategic goals.
The counter approach to handle internal and external corporate risks is called Enterprise Risk Management (ERM). Enterprise risk management (ERM) highlights the necessity of managing positive risk in addition to focusing on internal and external threats.to minimize all risk but to preserve and add to corporate value by making wise risk solutions.
Corporate risk can be organized into the following four areas:
- Financial and reporting risk (e.g., market, tax, credit)
- Strategic risk (e.g., reputation, customer relations, technical innovation);
- Compliance and governance risk (e.g., ethics, regulatory, international trade, privacy); and
- Operational risk (e.g., information and technology security and privacy, supply chain, labor issues, natural disasters)