**2.4. Responsibility for risc management**

Risk management is the responsibility of the organization's management, and the central objective of this process aims the risks management so that resources to be used efficiently and effectively in order to maximize profit and minimize threats, while safeguarding the interests of employees and customers.

In this respect, the entity's management must act in the following directions:


To ensure an efficient risk management is necessary to create certain organizational structures appropriate for the policies and strategies of the organization. In this respect, the organization should adopt appropriate policies regarding the organization plan, in order to effectively monitor each risk or category of risk and in an integrated manner, the whole risks system accompanying activities.

Policies and strategies that may be adopted regarding the organization plan are related to:

Integrated Risk Management System – Key Factor of the Management System of the Organization 259

Integrated risk management process is designed and set by the management and implemented by the whole staff within the organization. This process is not linear, a risk management may have impact also on other risks, and control devices identified as being effective in limiting a risk and keeping it within acceptable limits, may prove beneficial in

Risk management currently knows an appreciation and recognition increasingly large, both in theory and practice, which means, on the one hand the increase of number of specialists in the field, and on the other hand the interest of managers within organizations to design

Mastering risk determines organizational development, performance growth, both

Referring to risk management, COSO presented an initial framework methodology for implementing internal controls, built-in policies, rules, procedures and regulations that have been used by various organizations to secure control over how to run the plan and meet

Later, after the appearance of great scandals of fraud and the need to improve corporate governance processes, large corporations talked about and set up risk management departments to help implement procedures regarding the identification, assessment and risk

Following the emergence of these needs, Treadway Commission, COSO model promoter, initiated a program in order to develop a general methodology that can be used by

Risk management within the organizations was created on the concept of internal controls, but the focus was particularly on risk management. This was not intended to replace

Thus, between risk management and internal control was preserved a strong connection

*The main objectives of internal control/management system are to ensure the efficiency and effectiveness of activities, the reality of reporting and regulations compliance in the field.* The internal control/management system is developed and monitored in order to implement by the organization's management, which is responsible for designing adequate internal control devices in order to ensure limitation of significant risks and keeping them within acceptable limits, aiming to give the security that the organization's objectives will be met.

internal controls, but incorporating basic concepts of internal control in this process.

and implement effective risk management systems to meet the objectives.

generally, of the whole organization and also of individual activities.

**3.1. COSO and integrated risk management** 

organizations' management to improve risk management.

interrelated with common concepts and elements.

*3.1.1. Risk management and internal control* 

**3. Integrated approach to risk** 

controlling other risks.

objectives.

control.


Given that risk can be identified, evaluated and limited, but never completely eliminated, the organization must develop both general policies and specific policies to limit exposure.
