Risk management

Risk management or risk management is a series of activities aimed at preserving assets as well as reducing the risk of loss. Risk management also deals with the profitability of the company. It is important to note that risk management deals with both foreseen and unforeseen risks.

What does risk management include?

• Identification of all types of risks
• Assessment of risk severity
• Assessment of priority and urgency of risk elimination
• Monitoring and control of unwanted events
• Increasing the probability of favorable events

When it comes to the effects of this process, risk management can be divided into the following outcomes:

Risk Avoidance – Procedures to avoid risk and eliminate sources of threats Risk Transfer – Procedures to shift the responsibilities and resolution of risks from your company to a third party (for example, insurance companies). Mitigation of existing risk – Procedures to mitigate the consequences of a risk and to reduce its strength until an acceptable amount of risk is reached.

In today’s business environment, special attention must be paid to risk management over the company’s finances. Obstacles lurk from many sides and it is difficult for many companies to defend themselves against all possible problems.

Examples of risk in business:

• Liquidity risk
• Credit risk
• Risk of a decrease in the value of receivables
• Market risks
• Interest risks
• Operational risk

Contact and cooperation

At T-Accounting, we do all kinds of procedures and activities in the area of risk management. For all information and answers to your questions, contact us on our phone numbers or write us an email.