**Author details**

Gabriela Dobrotă *Faculty of Economics and Business Administration, Constantin Brâncuşi University of Târgu Jiu, Târgu Jiu, Romania* 

#### **8. References**

250 Risk Management – Current Issues and Challenges

with clear and measurable objectives.

of protection.

optimal management of it.

clear measurable objectives.

*Faculty of Economics and Business Administration, Constantin Brâncuşi University of Târgu Jiu, Târgu Jiu,* 

**Author details** 

Gabriela Dobrotă

*Romania* 

level and the amount of available resources, the proactive risk management capacity generates sustainable benefits for the company, resulting either in reducing the costs or to improve and streamline of the internal processes or the elimination of the insurance costs, economically unjustified, the need of training the decider as a person capable to take the increased costs due to the running of a business, whether to obtain a corresponding reduction in risk and thus of the losses that would be determined by their expression ; the attraction of the approach risk management to empiricism in the application of techniques

The application of techniques and methods of risk management must be a starting point for substantiating and applying the company's financial strategy. The course of action must be related to identifying the elements that may cause the manifestation of risks, sizing the probability of their manifestation, forecasting channels of influence and establishing means

It is not advisable to use only statistical models to determine the financial status (statistics entails the use of previously recorded data, and the maintaining of a constant level of indicators calculated on their basis is unlikely in an environment subjected continuously to profound transformations at short time intervals) but is required their completion with analysis reported to financial equilibrium, level of profitability, the ability to pay, the changes in the financial flows so as to enable an evaluation of the global risk and to apply an

Taking into consideration the issues presented in the paper it resulted: the importance of active risk management, to optimize the degree of risk assumed - the level of profitability achieved; the need to monitor and update the information on risk and the possibility of realization; the role of risk management in identifying business opportunities that lead to the highest level of return, consistent with accepted risk level and the amount of available resources; the capacity of proactive risk management to generate sustainable business benefits, materialized either by cost reduction or improvement and streamline of internal processes or the elimination of expenses with insurances, economically unjustified; the necessity to train the decision maker as a person able to undertake increasing the costs of running a business, whether obtaining a corresponding reduction in risk and thus of the losses that would be determined by their expression; attracting risk management from the area of the empiricism into that of a clear approach and the application of techniques with [1] Stancu I (2002) Finance. Bucharest: Economic. 867-868 p.

	- [20] Ivoniciu P (1998) The analysis of bankruptcy risk by the method scores. Finance, Credit and Accounting. 4: 17-19.

**Chapter 12** 

*"Life itself is a risk"* 

© 2012 Vasile and Croitoru, licensee InTech. This is an open access chapter distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2012 Vasile and Croitoru, licensee InTech. This is a paper distributed under the terms of the Creative Commons

**Integrated Risk Management System –** 

**the Organization** 

Emilia Vasile and Ion Croitoru

adequate risk management system.

limit, accepted by the entity's management.

methods used to manage unexpected events.

threats and exploit opportunities.

http://dx.doi.org/10.5772/47883

**1. Introduction** 

Additional information is available at the end of the chapter

**Key Factor of the Management System of** 

The management of any organization, whether working in the public sector, whether working in the private sector, aims in order to achieve its objectives to monitor and reduce risks. Risk control is achieved by managing them effectively, namely by implementing an

Risk management is an important concept related to safety and financial integrity of an

The strategy of an organization on risk management should be that all the risks it faces must be identified, assessed, monitored and managed so that they are maintained in a certain

Risk management is the process of identifying, analyzing and responding to the risks the organization faces and is exposed to. The costs of implementing this system depend on the

Risk management process is an ongoing one and the results are embodied in the decisions taken on accepting, reducing or eliminating risks that affect the achievement of objectives. The aim is to optimize the organization's exposure to risk in order to prevent losses, avoid

organization, and risk assessment is an important part of its strategic development.

**2. Risk management – Defining function within the organization** 
