Traditional Culture Encyclopedia - Traditional stories - Does the company have to carry out risk management? Are there any legal requirements?
Does the company have to carry out risk management? Are there any legal requirements?
Risk management, big or small, needs to be done. Risk management includes risk measurement, assessment and emergency plan. The ideal risk management is a series of prioritization processes, which give priority to the things that can cause the greatest losses and the most likely to happen, and postpone the things with relatively low risks.
In reality, the process of optimization is often difficult to decide, because the risk and the possibility of occurrence are usually inconsistent, so we must weigh the ratio of the two to make the most appropriate decision.
Risk management also faces the problem of effective use of resources. This involves the factor of opportunity cost. Using resources for risk management may reduce the resources available for incentive activities; The ideal risk management is to resolve the biggest crisis as much as possible with the least resources.
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