What do risk management companies do

She loves the digital world, social media and meeting different cultures. Now she focuses on helping freelancers and IT professionals to find jobs and clients worldwide at www. Save my name, email, and website in this browser for the next time I comment. The Role of a Risk Manager Risk manager — Job profile overview Although risk management as a concept originated in the financial services sector, today companies from almost every industry employ risk managers.

Risk manager responsibilities list The responsibilities of a Risk Manager are diverse and depend greatly on the industry they work in. What are the tasks of a risk manager?

What must a risk manager be able to do? Strong Analytical thinking Mathematical knowledge and understanding Good presentation and communication skills Accuracy and patience Ability to work under stress and make decisions quick Focused discipline and ability to concentrate Knowledge of the industry the company operates.

How much does a Risk Manager earn? Show more. Show less. Career insights Job Profiles. Natalia Campana Natalia is part of the international team at freelancermap. View all posts. Read more. By Natalia Campana March 13, Risk management specialists perform various tasks, all with the purpose of minimizing possible risks or losses for the businesses they serve. These losses include property, personnel, or cash flow.

They are responsible for identifying and dealing with any issues that may arise related to insurance or safety, which, if overlooked, could result in litigation. In order to accomplish the goal of lowering risks, these specialists must constantly be thinking about the inner workings of the business, analyzing areas that could pose a risk, and then taking steps to reduce or eliminate those risks. Risk management specialists may be called on to do a variety of things, such as filing workers compensation claims, inspecting work conditions, reading code and legal requirements, surveying clients, searching for any conditions where liability could occur, and negotiating with unions over workers' pay and working conditions.

Many specialists are also found in the finance department analyzing reports and cash flow information to ensure no fraudulent activities are taking place. Once risks are discovered, it is the responsibility of the risk management specialist to compile data and information into streamlined reports with graphs and statistics to support findings. These reports are then presented to leadership within the company. In addition to presenting risk reports, the risk management specialist is required to develop plans or policies that will reduce, avoid, or eliminate liabilities and losses within the company.

They are also responsible for the implementation and enforcement of the plans and policies developed. For example you might consider the strategic risks of the possibility of a US company buying one of your Canadian competitors. This may give the US company a distribution arm in Canada. You may want to consider:. Compliance risks are those associated with the need to comply with laws and regulations.

They also apply to the need to act in a manner which investors and customers expect, for example, by ensuring proper corporate governance. You may need to consider whether employment or health and safety legislation could add to your overheads or force changes in your established ways of working.

You may also want to consider legislative risks to your business. You should ask yourself whether the products or services you offer could be made less marketable by legislation or taxation — as has happened with tobacco and asbestos products. For example, concerns about the increase in obesity may prompt tougher food labelling regulations, which may push up costs or reduce the appeal of certain types of food. Financial risks are associated with the financial structure of your business, the transactions your business makes and the financial systems you already have in place.

Identifying financial risk involves examining your daily financial operations, especially cash flow. If your business is too dependent on a single customer and they are unable to pay you, this could have serious implications for your business' viability.

Financial risk should take into account external factors such as interest rates and foreign exchange rates. Rate changes will affect your debt repayments and the competitiveness of your goods and services compared with those produced abroad. Operational risks are associated with your business' operational and administrative procedures. These include:. You should examine these operations in turn, prioritise the risks and make provisions for such a risk happening.

For example, if you are heavily reliant on one supplier for a key component you should consider what could happen if that supplier went out of business and source other suppliers to help you minimise the risk.

IT risk and data protection are increasingly important to business. If hackers break into your IT systems, they could steal valuable data and even money from your bank account which at best would be embarrassing and at worst could put you out of business.

A secure IT system employing encryption will safeguard commercial and customer information. Risk evaluation allows you to determine the significance of risks to the business and decide to accept the specific risk or take action to prevent or minimise it. To evaluate risks, it is worthwhile ranking these risks once you have identified them. This can be done by considering the consequence and probability of each risk.

Many businesses find that assessing consequence and probability as high, medium or low is adequate for their needs. These can then be compared to your business plan - to determine which risks may affect your objectives - and evaluated in the light of legal requirements, costs and investor concerns.

In some cases, the cost of mitigating a potential risk may be so high that doing nothing makes more business sense. There are some tools you can use to help evaluate risks. You can plot on a risk map the significance and likelihood of the risk occurring. Each risk is rated on a scale of one to ten. If a risk is rated ten this means it is of major importance to the company.

One is the least significant. The map allows you to visualise risks in relation to each other, gauge their extent and plan what type of controls should be implemented to mitigate the risks. Prioritising risks, however you do this, allows you to direct time and money toward the most important risks.