Risk management in the Enterprise Management System

Risk management is an integral part of process management. Risk management is part of the process of activities within the organization and its implementers consist of multidisciplinary knowledge and background, risk management is a process that runs continuously. Explanation The following are the main elements of the risk management process:

Objective Setting

Establish the strategy, organizational policy and scope of risk management to be carried out.

Risk Identification

Identify what, why and how factors affect the occurrence of risks for further analysis.

Risk Analysis

Performed by determining the level of probability and consequences that will occur. Then determine the level of risk that exists by multiplying the two variables (probability X consequence).

Risk Evaluation

Comparing existing risk levels with standard criteria. After that, the existing risk levels for several hazards are prioritized for management. If the risk level is determined to be low, then the risk falls into an acceptable category and may only require monitoring without having to control.

Risk Control

Decrease the degree of probability and consequence by using various alternative methods, such as risk transfer, and others.

Monitor and Review

Monitor and review the results of the risk management system and identify changes that need to be made.

Communication and consultation

Communication and consultation with internal and external decision makers to follow up on the results of risk management carried out.

Risk management can be applied at every level of the organization. In addition, risk management can be applied at the strategic level and operational level. Risk management can also be applied to specific projects, to help the decision-making process or to manage areas with specific risks.