AN ASSIGNMENT ON

“DESCRIBE THE KEY ELEMENTS OF RISK MANAGEMENT”

SUBMITTED TO

AMITY UNIVERSITY KOLKATA

for the partial fulfilment of the award of the degree

MASTER OF BUSINESS ADMINISTRATON

BY

DEEPA GOENKA

ENROLLMENT NO: A91801922041

BATCH:2022-2024, SEMESTER -4th, SECTION: A

COURSE: RISK MAMAGEMENT (FIBA731)

FACULTY GUIDE: MS. MADHUMITA DAS GUPTA

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, KOLKATA

There are several key elements that form the foundation of a strong risk management program.
These elements can be grouped into two main categories: the process and supporting factors.

The Risk Management Process:

• Identification: This is the first step, where potential risks are recognized. This involves
systematically examining internal and external factors that could negatively impact the
organization.
• Assessment: Once identified, risks are evaluated based on their likelihood of occurring
and the severity of their potential consequences. This allows for prioritization of which
risks demand the most immediate attention.
• Response: Mitigating strategies are developed to address the identified risks. This may
involve risk avoidance (completely eliminating the risk), risk reduction (lowering the
likelihood or impact), risk transference (sharing the risk with another party like
insurance), or risk acceptance (deciding to live with a certain level of risk).
• Communication & Reporting: Clear communication is essential. Stakeholders at all
levels need to be informed about identified risks, the implemented mitigation plans, and
any ongoing monitoring efforts.
• Monitoring: Risk management is not a one-time event. Identified risks and the
effectiveness of mitigation strategies need to be continuously monitored. This allows
for adjustments to be made as circumstances change or new information comes to light.

Supporting Factors:

• Risk Appetite: This refers to the amount of risk an organization is comfortable taking
on in pursuit of its goals. Having a clear understanding of risk appetite helps guide
decision-making throughout the risk management process.
• Culture & Governance: An effective risk management culture requires an
organization where risk awareness is embedded throughout and employees feel
empowered to raise concerns. Strong governance structures ensure clear roles and
responsibilities for risk management activities.

By implementing these elements, organizations can establish a proactive approach to risk

management, enabling them to navigate challenges, seize opportunities, and achieve their
goals.