For the first time in a very long time, the concept of financial risk and risk m
ID: 2648182 • Letter: F
Question
For the first time in a very long time, the concept of financial risk and risk management has become a topic of concern at Presidential press conferences. Such concern has centered on esoteric financial products such as derivatives that are used to manage risk.What is the significance and importance of sound decision-making in risk and risk management in business? For the first time in a very long time, the concept of financial risk and risk management has become a topic of concern at Presidential press conferences. Such concern has centered on esoteric financial products such as derivatives that are used to manage risk.
What is the significance and importance of sound decision-making in risk and risk management in business?
What is the significance and importance of sound decision-making in risk and risk management in business?
Explanation / Answer
We have made decision each day. Few decisions have been straight-forward relatively as well as simple like is such report ready for sending to the boss now? The others have been quite complex like which of such candidates must I select for job? Simple decision mostly needs simple decision making process
If we are satisfied that we have good selections of the realistic alternative, then we will require evaluating risks, feasibility as well as implications of every choice. In the decision making, there are mostly few degrees of uncertainty that inevitably lead to the risks. Through evaluating risk involved with different options, we may determine either risk has manageable. The risk analysis helps us to look at the risks objectively. This uses structured approach to assess the threats & to evaluate possibility of the event occurring & what they could cost for managing. When we have made our decision, it is vital for explaining this to those who affected by this & involved in implementing this. We can talk about this why we chose alternative we did. More information we give for risks & projected benefit, more likely people have been for supporting the decisions. The high risk consequence is impact of decisions can be specific.