What is Risk Management?

Risk management refers to the management process of how to minimize the possible adverse effects of risks in a project or enterprise in a certain risk environment. Risk management is very important for modern enterprises.

Risk Management

(Chinese words)

Risk management includes risk measurement, assessment and response

Ability to effectively manage various risks

1 is conducive to the enterprise to make the right decision;

2 Conducive to protecting the safety and integrity of corporate assets;

3 conducive to the realization of business

Risk management is

There are two main types of risk management:

Risk management is a purposeful management activity. Only with clear objectives can it play an effective role. Otherwise, risk management will be in the form, have no practical meaning, and cannot evaluate its effect.

The goal of risk management is to obtain maximum security at the lowest cost. Therefore, it is not just a safety production issue, but also includes identifying risks, assessing risks, and dealing with risks. It involves financial, safety, production, equipment, logistics, and technology. .

Risk management in human resources management refers to risk management in various links such as recruitment, job analysis, career planning, performance evaluation, job evaluation, salary management, benefits / incentives, employee training, employee management, etc. Risks occur.

Risk classification:

Recruitment risk, performance evaluation risk, job evaluation risk, salary management risk, employee training risk, employee management risk, etc.

Risk Identification:

To prevent risks, we must first carry out risk identification. Identifying risks is actively looking for risks. For example, in employee management, the risk of turnover of technical backbones may arise from the following aspects:

1,

For modern enterprises, risk management is to identify, predict and measure risks, and select effective methods to reduce costs as much as possible and deal with risks in a planned way to obtain safe production.

Common approaches to risk management are:

Avoid risk: Passively avoid risk. For example, to avoid fires, houses can be sold, and to avoid aviation accidents, land transportation can be used instead. It is generally not used because of the following problems.

May bring additional risks. For example, the change from air transport to land transport, although it avoids aviation accidents, but faces the risk of land road transport accidents.

will affect

Risk management is an emerging management discipline.

Use of risk management research methods

Pure risk theory

In the 1970s and 1980s, many organizations went bankrupt due to accidents and other risks. This phenomenon has caused great concern among shareholders of multinational corporations and large conglomerates. To reduce the loss of accidents and other incidents, these companies began to introduce the concept of "loss control", and gradually shifted the focus of management from preventing injuries to preventing and controlling losses. Since then, risk management has received greater attention in the world and has gradually developed.

The diamond system was born under this background. She was pioneered by Mr. Frank Byrd, creator of the International Association of Risk Control Associations. Its early design was only to help companies control losses and reduce accidents. She is a public system. However, with the continuous increase in the demand for risk management by the international community and enterprises and the increasing interest and concern shown by the diamond system, the International Risk Control Association has to upgrade its safety and health environment quality protection system to meet market requirements and In line with international standards, after seven revisions by members of the United States, South Africa, Australia and other alliances, the diamond system has been proven to be a ready-to-use framework that covers all elements of occupational safety , health, environment, quality, and society. Integrated system that complies with ISO9001, ISO14001 and OHSAS 18001 / AS / NZS 4801 standards. She is one of the best integrated risk management systems in the world.

1. Manage the risks of change.

Informatization is a change in management philosophy, not just an n 'project. Many corporate executives have yet to realize this. During the implementation of the project, only the technical director is responsible, and the active participation of managers and business personnel is lacking. The project manager is led by the technical department.

The change of management concept is also reflected in the adjustment of the enterprise's original management thinking during the implementation of the information system. Informatization not only uses a system or buys a set of software, but more importantly brings a complete set of advanced management ideas. Only with a deep understanding, comprehensive digestion and absorption of new management ideas, and combined with the actual situation of the enterprise to use, can the benefits brought by the system be brought into full play. Therefore, it is an indispensable and painful process for enterprise managers and business personnel to change their management thinking during the implementation process. In a sense, the smooth change of management thinking is the most critical factor for the successful implementation of information technology.

2. Risk of business process reorganization.

In the process of informationization, it is natural to reorganize the business processes of the enterprise. The system's mature and advanced business process templates are worth learning from. However, the reorganization of business processes involves changes in personnel, redistribution of power, and changes in organizational structures, which will touch the vested interests of some people and form a great resistance. Without adequate thought and material preparation, leaders may be forced to stop halfway and retain the original inefficient but stable operation process due to possible unwilling or unbearable losses. Implementing the information system is not a simple matter of updating the software system, but a matter of repositioning the enterprise and reorganizing the business. The actual support and participation of senior management is the fundamental guarantee. Some enterprises simply hand over the powers and responsibilities of informatization to the technical department, and in the implementation process, these assigned powers and responsibilities are often difficult to implement. The participation and support of the top leaders is one of the important factors for the success of the project. In addition, companies

Risks exist objectively. Any enterprise faces internal or external risks, which will affect the achievement of corporate goals. Therefore, enterprise managers must perform risk management. So how to do good enterprise risk management?

1. Improve the awareness of risk management. In the business activities of the enterprise, the enterprise manager should undertake the project according to his or her own ability, carry out a pre-assessment system for the undertaken project, and try to avoid and give up. How many people receive how many projects, so that we can effectively avoid the risk of being liable to punishment due to inadequate personnel, personnel who do not comply with the bid, and degraded qualifications. In addition, we will not blindly expand the scale, so that each project can be within the effective management scope of the enterprise manager, and effectively avoid the risks caused by the inadequate management of the enterprise.

2. Enterprises should try to adopt a standardized management model, formulate standardized rules and regulations, and a position responsibility system. The "Boss" magazine stated that for each specific project, the company's managers should also work according to its own characteristics to the content of work involving supervision risks. , To formulate more detailed and targeted supervision implementation rules and risk management plans, so that all projects of the enterprise can do a good job of supervision in accordance with unified work procedures, requirements, standards, and properly perform the various responsibilities of supervision, So as to achieve the purpose of reducing risk.

3. Enterprise managers should establish a relatively complete supervision and inspection mechanism for dynamic management. Leaders and business departments at all levels of the enterprise should often go to the project for inspection and guidance, strengthen communication with the owner, listen to the owner's opinions, and timely communicate various new laws and regulations, changes in internal and external situations, and the requirements of the company and the owner. To the project supervisors, and in time find the deficiencies of the project supervision organization in the inspection, the enterprise manager should deal with the hidden risks of the project in time, so that they disappear in the bud state to avoid the occurrence of risk accidents.

4. Establish an emergency public relations team to comprehensively respond to emergencies. In order to strengthen the management and response to emergencies, it is absolutely necessary for enterprise managers to establish a well-trained, capable and efficient emergency public relations team within the enterprise. Its members should include personnel from the highest decision-making levels of the company, public relations departments, production and marketing departments, technology research and development departments, security departments, human resources departments and other relevant departments, as well as professionals such as legal consultants and public relations experts. Under normal circumstances, the emergency public relations team is responsible for real-time monitoring of the internal and external environment of the enterprise, analyzes and finds existing problems and hidden dangers based on extensive information collection, makes accurate predictions of possible emergency situations, and helps business management According to the prediction results, the authors formulated practical and feasible emergency prevention measures, supervised and guided the implementation of the preventive measures, strengthened the management of emergency warning mechanisms, carried out training for public relations personnel and all employees, and organized emergency situation simulation exercises. When an emergency occurs, the emergency public relations team should act as a command center, including establishing an emergency control center, formulating an emergency response plan, motivating the implementation of the plan, communicating with the media, controlling the spread, deterioration and weakening of the danger. The adverse effects of emergencies, resolve public doubts and hostility, so as to end the incident as soon as possible.