Benefits of Risk Management

  • Provides a structured framework for more effective strategic planning to ensure maximizing of opportunities and minimization of losses.
  • Widens management perspective and encourages initiative and pro-active behaviour.
  • Contributes to improved organizational efficiency and effectiveness.
  • Optimizes the use of resources.
  • Promotes greater openness in decision-making and improves communication.
  • Provides senior management with a concise summary of the major risks affecting the organization and a mechanism to ensure that appropriate resources are directed towards areas of high risk.
  • Provides a framework for ensuring that unavoidable risks are adequately insured.
  • Provides an effective and systematic approach which enables management to focus on areas of risk in their operations.
  • Improves the level of accountability in the organization