{"id":21650,"date":"2025-05-24T07:16:15","date_gmt":"2025-05-24T07:16:15","guid":{"rendered":"https:\/\/epiccontentanddesign.com\/grmi\/?p=21650"},"modified":"2025-05-24T07:22:53","modified_gmt":"2025-05-24T07:22:53","slug":"what-is-risk-management-why-is-it-so-important","status":"publish","type":"post","link":"https:\/\/epiccontentanddesign.com\/grmi\/blog\/what-is-risk-management-why-is-it-so-important\/","title":{"rendered":"What is Risk Management? Why is it so important?"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tRisk Management is a common term in the corporate and non-corporate world currently. You must have heard about it numerous times or have read multiple news, articles on how is it becoming so important and why every other organization is focusing on this particular aspect to run their company. Let\u2019s find out all about it in the following article.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tPurnima Singh, who recently finished the Global Risk Management Institute\u2019s (GRMI) post-graduate diploma in risk management (PGDRM) course, shines some light on the topic \u2018what is risk management and why is it important\u2019. Before pursuing a risk management career, Purnima completed her B.Com from the SPB college of commerce, she worked as a Junior Accountant at Shailees Export, before pursuing a risk management course and is currently placed in EY Business consulting Risk. According to Shubham PGDRM is one of India\u2019s best job-oriented courses. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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By Purnima Singh
\n\nPGDRM Batch Jan\u201921-22\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIt is humanly impossible to rule out risk from anything we do as it is an inherent part of our existence. On a daily basis, each one of us manage risks. Within the last few years, we have seen the attacks of 9\/11, Global financial crisis, now it\u2019s the pandemic. Extraordinary events have become a norm. If not for effective risk management our personal and professional performance along with our objectives would be at stake. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tSo let\u2019s see what Risk Management entails from an organizational perspective. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tMeaning of Risk Management\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tAny factor or event that creates uncertainty in achieving organizational objectives is \u201crisk\u201d. These risks can be in the form of financial uncertainty, strategic oversight, legal liabilities, IT and data-related threats, or natural disasters. Risk management is the process of identifying, analyzing, and responding to risk factors that may hinder organizational objectives. It helps in calculating the uncertainties and also predict their impact, consequently giving organizations a basis upon which they can make decisions. It prepares the organization for the unexpected by mitigating or minimizing the impacts of risk even before it occurs by acting proactively rather than reactively. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tImportance of Risk Management\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tNo individual can predict risks accurately in this dynamic environment, but organizations need to prepare for an uncertain and volatile future. Organizations are becoming ever so cautious about learning from past mistakes. The scope of legality is increasing owing to business practices such as globalization. Consumers are becoming aware and learned posing threat for businesses not adapting accordingly. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • Implementation of a robust risk management plan will help an organization build policies and procedures around avoiding potential threats and measures to minimize their impact if it occurs.<\/li>\n
  • It is crucial for any business to know the nature and extent of risk it is prepared to take the level of risk it can tolerate and communicate the same to its employees at all levels of management. This enables limited control all over the organization.<\/li>\n
  • The ability to understand risks enables the organization to make confident business decisions.<\/li>\n
  • It protects the organization from the risk of unexpected events that can cause it a financial and reputational loss.<\/li>\n
  • Planning and developing structures to address potential threats improves the odds of becoming a successful organization.<\/li>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tThus the practice of risk intelligence and risk management is seen increasing in many industries. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\tThe Global Risks Report 2021 by World Economic Forum\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    Risk Management is a common term in the corporate and non-corporate world currently. You must have heard about it numerous times or have read multiple news, articles on how is it becoming so important and why every other organization is … <\/p>\n","protected":false},"author":1,"featured_media":21652,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-21650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"\nWhat is Risk Management? Why is it so important? - GRMI<\/title>\n<meta name=\"description\" content=\"What is Risk Management? 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