RISK MANAGEMENT2Risk managementThe platforms to source the information about risk management and how it conforms tothe set standardsThe purpose of risk management usually revolves around identifying, evaluating and prioritizing risks accompanied by an effective coordination as well as the application of resources in the attempt of minimizing the predictable risks. This crucial information that pertains to the risks that are usually associated with any organization or business set up can be sourced from numerous sources. These sources can either be internal or even external with regard to the entity that is put under close scrutiny as far as risk management is concerned. Theseelaborate risks revolve around the factors of decision making that are not easily managed or evencontrolled. Some of the internal sources of information as far as risk management is concerned torevolve around the main stakeholders in a given project within the involved organization (Bessis 2015). They help bring to light the most crucial risks associated with the current project that theyare involved in. With such an elaborate enlightenment from them, the managing body takes charge in the matters relating to the effective management of those foreseen risks. Employees of a given institution can also be used as internal sources of the risk management information. In most cases, they are usually aware of the confidential information revolving around their working station and the potential risks associated with it which the management can use for the good of the organization. External sources mainly deal with the surrounding elements round about the organization which also goes on to include the various forms of nature.
RISK MANAGEMENT3Some of the outlined standards by the international organization for standardization revolving around risk management are as follows: the creation of value in the sense that the resources to be used in mitigating the projected risk are less than the consequence. This management should also incorporate human factors as possible elements of contribution in any given assessment of risk. Transparency ought to be paramount for an effective and efficient risk management. This elaborate standardization also calls for systematic and structured processes with the attempt of rolling it out in the appropriate way.The general impact of the legislation and regulations from all levels of government withregard to business operations as well the aspect of risk managementIt is very significant for a potential business owner to have a general overview in the wake of the regulations and legislation that are involved in the diverse business world. This givesthem the know-how that is usually very relevant in the day to day running of a business in line with the laws of the land. These areas of the law depend on the type of the business being established. Some of these laws are employment and competition law as well as consumer rights.With such enlightenment as pertains to these laws, the business owner will get the knowledge of what is expected of his or her business entity as far as the involved states or even governments are concerned. For instance, with the employment law, the potential business owner will have a look at things to do with the minimum wages of the employees, the redundancy and termination of employment, the employees leave as well as their pensions. The consumer rights, on the other hand, revolves around the idea of the sale of goods that are of satisfactory quality as well as fit for the intended purpose. The competition law, on the other hand, deals mainly with anti-competitive agreements and the possible abuse of the dominant market position. All this
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