**2.3. The importance of risk management organization**

256 Risk Management – Current Issues and Challenges

profitability planned, namely:

effects.

management.

and effectiveness.

arrangements.

decision makers within the organization.

In this respect, designing and implementing a risk management process at corporate level, is appropriate and necessary due to uncertainties of threats in achieving organizational goals. The implementation of this concept leads to certain changes within the organization, whose effects should be materialized through a better use of available funds and obtaining levels of



Risk management is characterized by the establishment and implementation of concrete activities and actions of identification and risk assessment leading to determine the risk level and by this act to implement adequate internal control devices to limit the probability of the risk occurring or the consequences if the risk materializes. The process must be coherent, integrated to the objectives, activities and operations carried out within the organization.

The staff within the organization, regardless of the current hierarchical level, should be aware of the importance of risk management to achieve planned results and to form necessary skills in order to perform monitoring and control based on principles of efficiency

The functional structures responsibles within the organization have the task to identify and analyze regularly the risks related to their activities, to propose and substantiate appropriate measures in order to limit the possible consequences of risks and ensure approval by

Practice3 recommends that any organization needs to manage its risks, because in many cases the occurrence of risks can have serious consequences upon the activities, sometimes

The complexity of risks and their increase has led organizations' management to understand that it is better to manage a risk than to cover a loss. Based on this requirement, many organizations have proceeded to implement risk management, developing specific strategies that have defined the organization's behavior towards risk and risk management

these consequences jeopardizing the very existence of the organization4.

Risk management is a preventive attitude on the elimination or limitation of damages, if any possibility of a risk materializing, namely a process of identifying, analyzing and responding to potential risks of an organization.

In these conditions, the role of risk management is to help understand the risks the organization is exposed to, so that they can be managed. This role varies depending on when the analysis is done, as follows:


The advantage of implementing the risk management system within the organization is to ensure economic efficiency. To achieve this requirement, the organization's management has the responsibility to make known the risks they face and manage them properly, in order to avoid consequences for their materialization.
