SACCO’s can categorize their risks into three broad categories, including: strategic, financial, and operational. The risk management process includes reviewing strategic plans and process documentation, identifying and analyzing control measures, determining where deficiencies exist or processes need to be changed, and establishing standards and metrics for monitoring risks.
Why Risk Management
- To reduce incidence of negative surprises
- To enable organizations to take advantage of opportunities
- To speed up response time when dealing with risks
- To link risk management to strategic plan
Risk Management Process.
Emerging Risk Management Trends
Sacco Business and user communities are evolving at a pace that has not been witnessed before. Ironically, it is sometimes argued that technology and society are evolving faster than businesses can naturally adapt. This trend, in all likelihood, may continue and intensify in magnitude in the future. This scenario means that it is fundamental for an organization to objectively make risk-based decisions in a dynamic fashion that adequately accounts for the key influences that contribute to the risk exposure of its undertakings.
The world has changed; security is not the same beast as before. Today’s risk factors and threats are not the same, nor as simple as they used to be. New emerging technologies and possibilities, e.g., the Internet of Things, change a lot about how companies operate, what their focus is and their goals. It is important for all of us to understand business objectives and try to support them by implementing proper controls that can be simply justified for stakeholders and linked to the business risk.
“Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.” Theodore Roosevelt