The COSO Framework for Internal Control
February 12, 2025
Insurance is one of the most regulated industries in the world. Also, there are multiple players which offer every type of insurance. As a result, the competitive pressures are very high. This ensures that the insurance companies are not able to charge exorbitant premiums. Almost every insurance company across the world is a price taker […]
Technology has disrupted the entire business world and the field of risk management is no exception. All across the world, companies have been spending millions of dollars in order to upgrade themselves and use technology in a manner that helps them minimize risks. There are several advantages to this approach which we already studied in […]
Increasing Importance of Culture in Corporate Decision Making The Indian Information Technology (IT) bellwether and the market leader in software services, Infosys, announced that it was appointing Salil Parekh as the CEO or the Chief Executive Officer following the resignation of Vishal Sikka, a few months ago. When the announcement was made, the company emphasized […]
Mintzberg and Quin (1991) proposed 4 broad situational factors which can influence the extent to which an organization can change. These factors are organizational age and size, the technical systems of the organization, organizational environment and the nature of control exerted from various sources. Organizational Age and Size: This is one of the most important […]
What is Organization ? A common platform where individuals from different backgrounds, mentalities, educational qualifications, interests and attitudes come together to work towards a goal as well as earn bread and butter for themselves is called an organization. Every organization has a unique style of working often called its culture. Culture – The ideologies, beliefs […]
What does risk management mean? Is it just identification, assessment and planning and controlling social, economic or physical threat to the organization? Is the concept only about transferring the risk or reduce its negative effects?
Well, the answers for the above questions is “no”. The process of risk management is not only restricted to controlling the threats or reducing their negative effects. It is a much deeper concept that also involves risk avoiding as well as risk taking. Every work involves some or other kinds of risk. Sometimes you avoid, sometimes you control the phenomenon and sometimes you simply let it come. Same is true for the business world.
The idea behind is that there are no hard and fast rules. This means that even though we have a systematic approach to treat risk it is not necessary that this is going to help.
Simply designing and implementing a risk management plan is not enough to treat risk. It depends on firm-to-firm and industry-to-industry. There are various other criteria that need to be analyzed such as internal and external environment of a company, company’s ability to develop and implement a risk management plan effectively.
There are various other issues that need to be addressed. Before you spend your time, efforts and money, see if you really require a full-fledged risk management plan to control the financial, physical or social threat to the organization. Deeply examine your requirements and need to treat the risk. Sometimes, avoiding risk is considered as the best strategy.
When you decide about a risk management plan, you need to examine thoroughly and ask yourself few questions before proceeding further. These questions act as an eye opener and provide you with the outline of what you need to do and what to look at. Read further to know what you should ask yourself while designing, developing, implementing or reviewing your risk management plan:
The golden rule for the success rule of a risk management plan is that there is no golden rule. Each firm is different and faces different types of risks in different business environments. You need to develop a unique plan for your firm to manage the risks efficiently and effectively.
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