Types of Risk Management in Today’s Industrial Sphere
There are numerous types of risk management. Each type has its own set of attributes which should be well understood by an organization in order to be dealt with right away. All of these types of risk management play an important role in the growth and success of an organization. They are also intended towards a specific risk that any organization can face. Therefore, to handle all of these risks well and to make sure the organization functions risk-free, it is imperative to understand all these types in detail.
Here is a list of the types of risk management:
- Operational Risk Management: The technical failures and errors made by the staff are dealt under the operational risk management category.
- Credit Risk Management: This type of risk management deals with the different types of risks associated with the non-payment from the debtors.
- Market Risk Management: The purpose of market risk management is to control non-payment from clients and the increase in the interest rate.
- Market Risk Management: This type of risk management deals with the different types of market risks, which includes interest rate risk, commodity risk, equity risk, and currency risk.
- Commodity Risk Management: This takes into consideration the different types of commodity risks, quantity risk, cost risk and price risk.
- Quantitative Risk Management: Quantitative risk management is about creating a strategic report of the possible adverse financial circumstances that the business can face.
- Non-Profit Risk Management: This is needed when companies offer risk management services on non-profit basis.
- Bank Risk Management: This type of risk handles the different types of risks associated with banking services such as credit risk, liquidity risk, operational risk and reputational risk.
- Currency Risk Management: This deals with the changes in currency prices.
- Project Risk Management: This category handles the types of risks associated with undertaking a project.
- Enterprise Risk Management: This risk management type controls the different types of risk of an organization associated with accomplishing its goals.
- Technology Risk Management: Technology Risk Management is all about handling the risks associated with implementing a new technology within an organization.
- Software Risk Management: This is an important discipline to control the different types of risks associated with software and its usage within an organization.