Risk management. Necessary or not? (english Version)

Hello blog friends.

In my blog this time I would like to share to you guys Sciences. That is about risk management. Keep in mind that living in this world full of risk for all of us. As a simple example is when we walk leisurely, when you are not careful then you are going to fall because there are rocks that block you. So from each job and what you do is the risk to you, whether large or small. Therefore to minimize the risk, we must organize and manage the risks properly will happen to you.

Risk is the danger, effect or consequences that could result from a process of ongoing or upcoming events. Or can we understand the meaning of insurance, risk can be defined as a state of uncertainty in which the event of an unforeseen circumstance that could cause harm to our lives in the future. Therefore to avoid a risk that could disrupt our future need for risk management. Risks can be categorized into two forms, namely:

1. Speculative Risk

Speculative risk is a situation faced by a company that can provide benefits and also disadvantages. This risk is often referred to with the word business risk (business risk). Example: a person who invests in a company. There is the possibility of successful and profitable investment, but there is definitely the possibility of loss.

2. Pure risk

Pure risk is something that can only cause harm or not happen and could not have been profitable. One example is natural disasters landslides. Landslides are only causing harm to the company, not profitable. One way to avoid this risk is to protect all assets with a strong insurance. That way we have managed to reduce the risk of natural disasters.

Risk management is a structured approach to managing uncertainty related to a threat that could threaten what we do. There are several strategies used by someone for risk management is to transfer risk that will befall yourself to others, trying to avoid the risks that will occur in the future, reducing the negative effects of risk and hold some or all of a particular risk.

Everyone has different risks. Thus the goal of the implementation of risk management is to reduce different risks related to the field have been at a level that can be accepted by society. It is a threat in the form caused by natural disasters, human technology, human beings themselves, the organization and politics.

There are some risks that are discussed in risk management are:

1. Operational Risk
2. Hazard risk
3. Financial risk
4. Strategic risk

Systematic approach to risk management is divided into 3 stages. That is:

1. Identification of risk

The first thing that must be done to address the risks that will happen to us is to identify risks. All people are at risk. Not just ourselves. The company that operates also has risks that can disrupt the continuity of production. Before we run the company or its activities, then we should be able to identify any risks that could hinder the continuity of activities in the future. Start writing down what are the risks that will happen.

2. Analysis and evaluation of risk

Once we get a list of risks that will happen to us as well as the company, the next step is an analysis of the risk. The analysis was done by listing costs and benefits when it comes risks. If the losses incurred, it must make a solution when the risk occurs. Once everything is done to make a list and profit losses. Thus these results will be evaluated solutions that have been made.

3. Response or reaction to address those risks.

The last step we have to do is a response or reaction to address those risks. Once everything has been deemed ready to cope with risks. Once the risk of actually coming within us as well as companies, responses and reactions in tackling the situation is necessary. Time to perform or implement solutions that have been made previously. And evaluate if the solutions are not appropriate and use the next solution.

steps to manage risk (according SELL.STIE-MCE)
The stages of risk management:
a. Identify in advance the risks that may be experienced by the company
b. Evaluating the risks of each in terms of severity (risk value) and frequency
c. Control risks, physical (risk eliminated, minimized risk) and or financially (detained risk, the risk is transferred)
d. Eliminate risk means eliminating all potential losses, such as in driving a car in the rainy season, limited to a maximum vehicle speed of 60 km / h
e. Minimize the risk carried by efforts to minimize losses, for example in the production, the chances of product failure can be reduced by quality control (quality control)

f. Hold its own risk means to bear the whole or part of the risk, for example by setting up reserves in the company to face the losses that would occur (retention)
g. The transfer / transfer of risk to do with the move or the risk of loss that may occur to others, such as insurance companies

There are many benefits when implementing risk management, among others:

• Useful for taking decisions in dealing with complex issues.
• Facilitate the estimated cost
• Improve the systematic and logical approach to making decisions.
• Provide guidance to assist the formulation of the problem.
• Allows a careful analysis of alternative options.
• Allows for decision-makers to address the risk.

Of all the information that I discussed above, it risks do exist and will always exist in every activity that you do every day. Whether it's a speculative risk and pure risk you have to be careful and prepare appropriate solutions to address the risks that come disrupt your activities.

* Excerpt from jurnal_sdm risk management and wikipedia.