Risk Management
An efficient risk management process works similar to the human organism or other network structures in nature. The brain, heart and nervous system work together in a human organism. Networks are adaptable and flexible, have common goals, play together and avoid hierarchies. Network structures are scalable and extremely viable.
Applied to the process of risk management, this means that various sensors and senses (such as eyes, ears, nerves or early warning indicators) take up the risks and forward them to a central point (brain or risk manager). And overall, the strategic orientation of the system (company) decides on the understanding of risk. In this context, it is important not to consider the strategic dimension of risk management separately from the strategic management (business strategy). [Nbsp] Strategic risk management forms the integrative bracket and the foundation of the entire risk management process. Above all, it includes the formulation of risk management goals in the form of a "risk strategy". Before risk management can be introduced and practiced as a continuous process, the basics regarding the framework conditions (e.g. risk appetite, risk-bearing capacity), organization (e.g. functions, responsibilities and information flow) and the actual process phases must first be defined.