Business understanding

After preparing the ranked list of risks, a risk manager then needs to lead the process of planning how to manage them. That could include accepting risks that are deemed reasonable based on an organization’s agreed-upon risk appetite and risk tolerance or adopting strategies to mitigate risks so they pose less of a business threat. In other…

Risk management is the process of identifying, assessing and managing potential issues that could have a negative impact on an organization’s business operations and financial performance. It involves being mindful of potential risks and what could go wrong — both the expected and the unexpected. Risk managers must be aware of all forms of risk…

Risk managers need to know the potential cost of network outages and security breaches, as well as the likely financial impact of other business risks. Ultimately, financial risk will get everyone’s attention in the C-suite and individual departments. The costs of lost productivity, lost income and financial penalties can be crippling to a business if…

Risk management requires constant education and keeping up with relevant news, trends and issues. Not so long ago, no one had heard of ransomware. Now, it’s one of the greatest cybersecurity threats that companies face. News sites and industry journals should be regular reading material for risk managers.

No sports team ever wins by only playing defense — and that applies here, too. If risk managers look at how things affect the business as a whole, they might come up with a better way for their organization to operate. Part of a risk manager’s job is to see the big picture — and…

Risk managers need analytical skills to collect data, analyze risks and make sound decisions based on the results. They also need to be able to spot holes and weaknesses that others may have missed in IT systems and infrastructure, business processes, financial practices and other areas.