Risk management system can provide accomplishment of a number of the managerial purposes of the organization.
She can act as a basis of all management activity, on its base managerial strategy and a control system is based. Below the hierarchy of the purposes and development stages of a management system overall risk of the organization follows:
- To formulate vision, strategy and tasks of management of the organization at the conceptual level and to specify them regarding interrelation and internal logic;
- To establish the principles of determination, assessment and diagnostics of risk as a basis at statement of priority strategy and tasks;
- To use these principles as base for creation of the major procedures of managerial supervision, including during creation of the scheme of an organizational structure, preparation of documents on authority delegation and also technical specifications of the main and auxiliary divisions;
- To define procedures of ensuring responsibility, a self-assessment and performance appraisal according to the principles of risk management and a control system; to use these procedures as factors of improvement of management process;
- Being guided by the above-mentioned principles and procedures, it is necessary to develop the mechanism of monitoring and feedback for the purpose of high-quality providing procedures, assessment and check of their observance.
Risk management system assumes the comprehensive analysis of set of the available risks, their identification, assessment and development of mechanisms of control. The requirement of system approach assumes the maximum scope of all types of risk. It caused need of their accurate classification.
The problem of risk management cannot be effectively solved by a set of separate actions and services. This problem is solved only by implementation of the complex technology of risk management affecting all aspects of activity of the company. The principle according to which any business solution cannot be accepted without understanding of a risk degree adequate to the made decision has to be the cornerstone of technology.
Results of development of managerial technologies of decision making and minimization of possible losses was the concept of complex (global) risk management.
Integrated management of risks has to be an integral part of strategic and operational management of any company seeking to become the leader in the market.
Effective functioning of risk management system demands observance of a number of the principles which have to be mortgaged in it at a stage of its design and construction:
- the maximum scope of set of risks provides aspiration to the most complete scope of possible spheres of emergence of risks that allows to minimize uncertainty degree;
- minimization of influence of risks demands efforts in the directions of minimization of a range of possible risks and extent of their influence on activity of the company;
- the adequacy of a risk response assumes a possibility of proper and fast response to all changes in total of risks;
- adoption of reasonable risk, i.e. adoption of risk is possible only in case it is identified and evaluated, developed and introduced the mechanism of its monitoring.
The functions assigned to risk management system predetermine the content of the management process which comes down to the following sequence of works:
- development of policy in the field of risk management;
- the analysis of a situation of risk, i.e. identification of risk factors and assessment of its possible level, forecasting of behavior of economic subjects in this situation;
- development of alternative versions of the decision and the choice of the most acceptable and lawful of them;
- determination of available ways and means of risk minimization;
- preparation and planning of measures for neutralization, compensation of the expected negative consequences of risk.