**5.2. Internal and external environment and its influence over the integrated risk management**

The implementation of a risk management system within the organization should impose establishing relationships both within the organization and beyond. Also, the ones responsible for implementing integrated risk management have relationships with the entity's management and staff of the entity's functional structures.

The management of the entity shall decide on the risk management strategy adopted in the organization and approve any measure relating to the risks. In this regard, is regularly informed of the results of risk management and carry out in order to establish ways in which the risk management is done.

The ones responsible for risk management in the organization are communicating and realizing the risk strategy and policy promoted to all the employees, and any decision taken by management on risks. Receive from the structures any information on the risks, analyst, process, and make proposals for the management on appropriate measures to be taken depending on the nature of managerial implement these measures.

Risk communication and how they are required to be managed is based starting on the management level to the level of execution and shall ensure that:


The nature of relationships established in risk management process is a functional one, respectively; the ones responsible with the risks have the authority to charge risk of transmitting to the functional structures of the entity information on risk strategy and information related to risk management process implemented. At the same time, they require the information about the identification and management of risks.

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face and how to manage, taking into account the limit of the appetite to which it may be exposed. The objectives are dependent on the planned development requirements and performance levels established, but should be considered the risks to the objectives and





Integrated risk management model has some limitations due to errors, avoiding checks, and human judgment in making decisions that can sometimes be wrong. These limitations make

At the same time, responsibility for designing and implementing appropriate risk management is the organization's management and other staff to support risk management philosophy and apply established rules on risk management, each in their area of

The classic risk management process, which was joined and implemented by most of organizations, is a fragmented on, in the sense that functional structures within an organization manages its own risks independently. Thus, each compartment, according to the procedures and methodologies developed, shall identify and manage risks associated to

are well managed, thus ensuring better use of available resources.

it impossible to issue an insurance of the need to achieve objectives.

the costs necessary to manage these risks.

opportunities.

events that are opportunities.

responsibility.

acceptance, treatment, and avoiding or risk transfer.

The increase of confidence in the risk management system promoted and implemented at the organizational level is achieved by:


Entity's activities are influenced by several external factors, the nature of threats that affect achievement. Integrated risk management system must identify the nature of the risks these threats, to analyze, evaluate and determine the response to risk. In some cases, establishing a risk response does not ensure acceptable risk appetite as risk reduction measures are dependent on the activities and objectives of the organization.

To ensure acceptable levels of risk there should be a system of relationships established with various external factors, which, put in place, to ensure reduction of exposure.

Building and implementing an integrated risk management system helps to direct resources to risk which particularly affect the activities and support the organization in achieving its objectives.
