An efficient risk management system is an important element of the general strategy of an enterprise. Business decisions are taken in a dynamic business environment and the conditions of running businesses evolve. That is why the implementation of systems that make it possible to manage risk should be a continuous and adjustable process.
The goal of all the processes defined under the common name – Enterprise Risk Management – is to create a map of all the risks that can occur in an enterprise (not only those which are insured). The preliminary stage of risk management is risk evaluation. Risk management standards mention the steps such as analysis, identification, description, and risk measurement at this stage of the process. Subsequent stages are focused on actions such as reduction, transfer, further monitoring, and risk control.
Physical control makes it possible to avoid hazards through preventing actions that lead to the materialization of a given risk or to the reduction of the likelihood of loss materialization as well as its value.
Preventive as well as repressive measures are taken. Financial control means retention of the financial consequences of risk materialization. Decisions about individual financing of the consequences of risk materialization are taken. Financial control of risk involves also the transfer of the financial consequences of risk materialization, most often in the form of insurance.
The final effect of an integrated risk management system should be the development of the possible solutions for coping with the risks (e.g. Lean Six Sigma). Using such systems strengthens the negotiation position of the enterprise against the insurance company and it has a positive influence on the prices of the insurance policies concluded.
Individually or in cooperation with other entities, we introduce elements of risk management or complete programs connected with it in the enterprises of our Clients.