**2.5. Effectiveness of risk management**

The activity of an organization is characterized by all processes, procedures, inputs, outputs, resources (financial, material, human and informational) and technical means for recording, processing, transmitting and storing data and information on activities and environment where the system is operating.

By internal/management control programs prepared each functional structure should identify the risks they face, and by using procedures and risk management policies to ensure their maintenance at acceptable levels.

Risk management is an ongoing, structured process, that allows identifying and assessing risks and reporting on opportunities and threats affecting the achievement of its objectives. The benefits of implementing the risk management process include:


The organization's management and staff perform risk management activities in order to identify, assess, manage and control all types of events or situations that may affect its activities.

In the world today has become increasingly more imperative for corporate managers to monitor and manage risk5 in all aspects. A good risk management means avoiding or minimizing loss, and also treating opportunities in a favorable manner.

Risk management is necessary because organizations face uncertainty and the biggest challenge of the leadership is to determine what level of risk it is prepared to accept to achieve its mission, in order to add value to activities and to achieve planned goals.

Risk management is an essential component of the organization's success and must become an intrinsic part of its functioning. It must be closely related to corporate governance and internal control, but also connected with performance management6.
