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