Functions of organization risk management

Abstract

In the functioning of production processes, there are elements of uncertainty that cause situations that do not have an unambiguous solution. Relative uncertainty is characterized by a situation of risk, when the occurrence of events is likely and can be determined. Risk management is part of the activities of the organization’s managers aimed at cost-effective protection of the organization from unwanted conscious and accidental circumstances that cause material damage to the organization. Risk management, like any management activity, has its own logical aspect (decision making) and its procedure (sequence of actions). Risk management is the process of developing and implementing solutions that minimize incidental or legitimate events that cause material damage to the organization.At the same time, in the field of effective risk management, the problem is that attention is not focused on the presence of risk factors that affect the dynamics of several types of risks simultaneously.