Risk management has been applied to various projects—both for professional and
personal use. Organizations in different fields have started addressing the various risks
involved in their activities. Creating a good risk management profile that is meant to
examine threats and opportunities in their organization is one of the most important
aspects of a good risk management program. With this, an evaluation of the risks
identified should be the first thing any person or organization should do in order to create
a feasible risk management profile. It should also take into consideration the company’s
objectives, goals and other resources so that any deviations will be easily addressed.
Being well informed on operations is a vital step in designing a good risk management
In line with this, it has to be noted that limits and restrictions should also be implemented
in assessing risk management profiles. It is common knowledge to all risk managers that
risk is an integral part of any business and the secret to the survival of the business is
proper management of risks.
In formulating risk profile, knowing both operational and corporate positions is important
to assist each department in understanding risks. Assessing the risks and identifying them
is a crucial element of developing a risk profile.
In your company, there are three benefits for developing risk profiles
1. Risks, prospects and opportunities can be identified and analyzed.
2. The company can assess the current status of risks.
3. Key risks, mitigation capability, risk tolerance are also recognized.
In creating your profile categories should also be taken in consideration. Accounting/
financial risks, operational risks, tactical risks (this includes marketing and competition),
technical risks and legal risks. You have to remember that creating profiles, information
must be accurate and complete. Thus, it will also give you a precise analysis.