Ways to improve the activity of a company using an aproach based on risk

Author:William Archibald BOWMAN, KPMG

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Keywords:assessment, exercise, benefits, organization, rhythm, malpractice

Abstract:
What we understand by risk assessment? This is, in fact, an assessment of the risk levels in the processes of a company and in its activities in the main fields, meant to help the management in making the decisions concerning how to react to these risks. This assessment is part on a broader activity of risk management, based on which the companies draft plans related to the occurrence of some bad events which can occur in the future and decide how they will react to these potential threats. Although it is a well-implemented process in many parts of the world, in the Romanian companies this exercise of risk assessment is only at the beginning. In other words, many use an informal version. However, with the economy growing and the country confronting with the tougher environment of the European single market, the Romanian companies will start to become more familiar with the benefits of the exercise of a formal assessment of the risk. \r\n\r\nThis exercise of risk assessment is an integral part of the general management process. The information generated can be applied in several fields of activity of an organization, as for example the department responsible for legal and insurance aspects, which in general ensure the observance of the existing principles and legislation. The exercise of risk assessment has considerable benefits in assuring that the company has an ethical and effective performance and this will become more and more important for the Romanian companies as well with their integration in the more competitive environment of the European Single Market. For this reason, it is essential for the credibility of risk assessment for this exercise to be performed by experienced professionals who have a good understanding of the company businesses and who can identify the risks and can assess their impacts on the business in general.\r\n

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