RİSK MANAGEMENT PROCESS

Risk management process objectives include the following:

1. To contribute to the long-term survival of the organization.
2. To maximize the value delivered to all stakeholders.
3. To link growth, risk, and return.
4. To safeguard the assets and reputation of the organization.
5. To facilitate greater operational effectiveness and efficiency.
6. To increase the likelihood of achieving strategic and operational objectives.
7. To comply with legal and regulatory requirements.
8. To improve organizational learning and resilience.
9. To be better placed to take advantage of opportunities as they arise.
10. To help an organization become more risk mature by considering its current and future risks in a coordinated manner within an enterprise-wide framework.
11. To improve the understanding an organization has of itself and its activities to enable better decision-making, operational management, and deployment of capital and resources.
12. To reduce uncertainty and volatility in those areas of organizational activity that do not benefit from being risk-laden. In other words, if there is not a reason to accept a risk or to incur the costs associated with controls, the risk should be minimized or removed.

Risk management follows a cyclical and iterative process that uses monitoring as a feedback loop to maintain alignment with strategic objectives, improve the effectiveness of identification and response, and continually raise the level of risk maturity.

Risk management, as a structured approach to addressing the full range of risks faced by an organization, has developed considerably over the last 30 years.
Operational and strategic plans may fail because events occur or conditions arise for which the organization was unprepared. Similarly, losses may arise if resources are irreversibly committed to one opportunity when a better opportunity presents itself. Risk management processes aim to help management by identifying and analyzing potential threats, vulnerabilities, and opportunities; agreeing on effective strategies; and providing regular updates to confirm risks are being managed effectively.