By risk management [] one understands well-planned handling risks. It can concern general business risks or around special financial risks.

Also technical risks can be treated in a management system, this are e.g. a component of the industrial safety and/or industrial safety management. In the small measure they play also at the financialreferred risk management a role. Thus some questions question catalog of Basel of the II e.g. refer also to technical risks, like risks of the production process and the industrial safety.

The risk management plays a central role in the insurance market and as preliminary stage to the insurance.

Contents

Risk management covers:

• Definitions of goals on basis of the vision and strategy of the organization
• Definition of value drivers or critical success factors for the reaching of goals
• Definition of a risk management strategy
• Identification of risks (designated in the financial risk management with "Exposure determination")
• Evaluation/measurement of risks
• Accomplishment of risks
• Control
• Monitoring, thus early recognition.

In principle risk management begins in the moment, in which a vision, an ideal of the future reality develops. Because the chances, which one must notice in addition, are endangered by imponderables. Without concrete goals no deviations can be measured.

The choice of the strategy depends essentially on the attitude (risikoavers, risk-neutrally or risk-joyfully) in relation to a project.

The identification of risks can take place e.g. by means of scenario technology, post-mortem analysis, expert questionings, check lists, creativity techniques or simply via open and honest communication.

A possibility for the measurement of risks are risk characteristic numbers like the VALUE RK Risk (VaR), but evenly only one. An evaluation can take place also via expert judgement. For the representation a risk matrix can be used, which confronts the probability of entrance of a risk to its consequences and/or damage.

A goal of the risk monitoring is it to keep the recognized risks in the eye.

In principle there are five different risk price increase strategies:

• Risk avoidance, e.g. by renouncement of a business or a task of a business field
• Risk transmission, - over rolling e.g. on market partner (outsourcing) or insurance
• Risk reduction, e.g. risk diversification
• Risk acceptance, e.g. compensation by doping of the prevention of risk
• Risk removal, e.g. by turning an organizational lack off.

Typical problems in the risk management

Risk management was not only invented since the KonTraG or the Sarbanes Oxley act. Enterprises, organizations and individuals had to master risks of all kinds within living memory.

Negative consequences since the and the innumerable scandals "again" invented risk managements are over-on-boardend bureaucracy, a tide of by sections redundant, pseudoscientific literature and the stabilization the korporativen style of leadership the contrary-running Unternehmenskultur of complete control and monitoring.

The largest risks in the organizations are always the actions themselves, because they cannot to see or to see want changes of the environment (market risks, environmental risks, technological risks) punctual. The more largely their scope of action, the more highly the risk. Since the headquarters, which are responsible in today's enterprises for risk management, in addition, internal revision and Corporate Governance, serve, are this action their influence possibility at least in crucial questions rather small. This applies in particular if the responsible persons lost the road grip or into the own bag to keep house.

In the practical, operational risk management one of the Hauptprobleme is the realistic evaluation of risks, which is nearly always based on subjective acceptance, in addition, the definition from meaningful early warning indicators to the monitoring of identified risk potentials.

Mathematical sizes in the risk management

• Net yield
• Performance (risk management)
• Profit
• Arithmetic net yield
• Geometrical net yield
• Annualisierte net yield
• Constant, logarithmierte net yield
• Average value, expectancy value
• Variance
• Standard deviation
• Coefficient of correlation
• VALUE RK Risk.

Legal aspects

After the law as a check and transparency in the division (KonTraG) corporations (AGs) in Germany are legally committed to a subrange of the risk management, to the risk early recognition, in order to guarantee the receipt of the own enterprise. This applies admittedly today also to other forms of business organization and - sizes and in particular for GmbH's ("§ 43 I and II GmbHG - whereby "§ 43 II regarding the risk management it is laid out in such a way that the GmbH managing director must fulfill the proven obligations "§ to 91 II of the AktG). The examination of the risk early recognition system after "§ 317 exp. 4 HGB by the accountants aligns itself thereby primarily at the IDW test standard 340 (IDW HP of 340). During the early recognition from risks is to differentiate according to "inventoryendangering risks" - with 12 a monthly aspect - and the "risks, which have effects on the yield, financial and financial position" - with 24 a monthly view - of the enterprise. Similar legal requirements are international to an accounting regulation for enterprises, which are listed at US stock exchanges for example in the Sarbanes Oxley act. Risk management is a component of the internal control system (IKS), demanded in the Sarbanes Oxley act.

Articles in category "Risk management"

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