**6. Impact of integrated risk management on the organization**

To ensure good risk management it is important to provide assurance that each employee understands properly the risk management process within the organization and knows his role and responsibilities in this process.

Risk management process does not require identification and elimination of negative events that may affect the carrying out, if the risk occurs, but also aims to analyze and evaluate risk and risk appetite according to design and implement control devices to limit the probability of risk. It provides the management with a *"framework approach to effective risk management and its possibilities".* 

Risk management objective is to identify risks, causes that generated them and establish appropriate control device to reduce its level, but using the lowest cost.

By implementing an integrated risk management system shall ensure:


280 Risk Management – Current Issues and Challenges

the organizational level is achieved by:

structures of the organization; - improving the risk assessment.

role and responsibilities in this process.

objectives.

*and its possibilities".* 




dependent on the activities and objectives of the organization.


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

The increase of confidence in the risk management system promoted and implemented at


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

To ensure acceptable levels of risk there should be a system of relationships established with

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

To ensure good risk management it is important to provide assurance that each employee understands properly the risk management process within the organization and knows his

Risk management process does not require identification and elimination of negative events that may affect the carrying out, if the risk occurs, but also aims to analyze and evaluate risk and risk appetite according to design and implement control devices to limit the probability of risk. It provides the management with a *"framework approach to effective risk management* 

Risk management objective is to identify risks, causes that generated them and establish


various external factors, which, put in place, to ensure reduction of exposure.

**6. Impact of integrated risk management on the organization** 

appropriate control device to reduce its level, but using the lowest cost. By implementing an integrated risk management system shall ensure:

require the information about the identification and management of risks.


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

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 responsibility.

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

objectives independently, without a coordinated approach and without taking into account the interdependencies of risk within the entity.

Integrated Risk Management System – Key Factor of the Management System of the Organization 283

Meanwhile, the integrated risk management process represents an instrument that allows a coordinated approach across the organization to identify and analyze the mechanisms of

Integrated risk management is a powerful tool that enables the management of the organization to have a picture of the risks affecting the achievement of strategic and operational objectives, and provides at the same time, leverage for the foundation and

The process of identification, analysis and assessment takes into account the events of the organization, which can take negative shape and are associated with risks or positive shape

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risk whose initial starting point is the strategic dimension.

management decision making.

Emilia Vasile and Ion Croitoru

**Author details** 

**8. References** 

and are associated with opportunities.

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