What is the importance of risk management for organisations? - GRM Institute

What is the importance of risk management for organisations?

 

In today’s time, lots of businesses are at an expansion stage and they are going all out to capture the market share and gain some edge over their competitors. Strategizing every move on how to make their operations efficient and effective by abiding by all the regulatory and compliance requirements of the industry and government, have a flawless reporting structure by having a strong balance sheet to gain investors’ confidence, businesses are trying to place themselves in a favorable position by ticking all the boxes.

In the above sentences, words like strategy, operations, reporting, and compliance have been mentioned, these are the key factors of risks involved. So this signifies that every business’s normal stream of working is associated with the prime factors of risks. If these factors are ignored, the business is bound to fail, and let’s not forget the fact that these factors feed off of each other which makes them even more potent.

 

Role of Risk Management in growing economic instability

In today’s day and age, businesses need to be equipped to ride the strong economy and also to manage the challenges of a slow-down which turn hurts the business. With current stock marker fluctuations, credit market crashes, currency fluctuations, etc., economic instability is a concern for all businesses-small, large, and start-ups as it reduces the flow of money in the economy and starts impacting the business operations.

 

Read more here: Growing importance of Risk Management in organisations

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