What is Risk Management?

Risk management is the process of identifying, assessing and controlling threats to an organisation's capital and earnings. These threats, or risks, could stem from various sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.

At Star IT services, protection is about more than just having the right insurance policy. It also means preventing claims before they happen. That's why we base our client relationships on a firm foundation of risk management. Our team of experts will help identify potential risks, examine your operational policies and procedures, and suggest ways to protect your organisation better, ensuring that every day is business as usual. Our unmatched science, technology, and numerous catastrophe risk models help (re)insurers and other organisations evaluate and manage the risks of natural and human-made disasters.

We help our customers outperform, and the world becomes more resilient by making every risk known.

Risk Management

Why is Risk Management Important?
  • Risks management is an essential process because it empowers a business with the necessary tools to identify and deal with potential risks adequately. Once a chance's been determined, it is then easy to mitigate it. Besides, risk management provides a business with a basis upon which it can undertake sound decision-making.
  • For a business, assessment and management of risks are the best way to prepare for eventualities in progress and growth. When a company evaluates its plan for handling potential threats and then develops structures to address them, it improves its odds of becoming a successful entity.
Risk Analysis Process
  • Identify existing risks:

    Risk identification mainly involves brainstorming. A business gathers its employees together so that they can review all the various sources of risk. The next step is to arrange all the identified risks in order of priority. Because it is not possible to mitigate all existing threats, prioritisation ensures that those risks that can affect a business significantly are dealt with more urgently.

  • Assess the Risk:

    In many cases, problem resolution involves identifying the problem and then finding an appropriate solution. However, before figuring out how best to handle risks, a business should locate the cause of the risks by asking the question, "What caused such a risk and how could it influence the business?"

  • Develop an appropriate response:

    Once a business entity sets on assessing likely remedies to mitigate identified risks and prevent their recurrence, it needs to ask the following questions: What measures can take to avoid the identified risk from recurring? Besides, what is the best thing to do if it does recur?

  • Develop preventive mechanisms for identified risks:

    Ideas that prove to help mitigate risk evolve into several tasks, which develop into emergency response plans for future use. If something goes wrong, you need to implement an emergency response plan.

Looking for Risk Management?