Methods & Elements of a Solid Risk Management Strategy

By Jorgensen, Haley | Risk Management, July 2005 | Go to article overview

Methods & Elements of a Solid Risk Management Strategy


Jorgensen, Haley, Risk Management


Establishing a risk management strategy is not easy. The process demands companywide collaboration, goal alignment, evaluation of identified exposures, development of a plan to deal with those exposures and a commitment to continual improvement. Before developing a new risk management strategy, or re-evaluating an existing one, consider the following advice from several risk experts willing to share their philosophies.

Intimacy of operations, goals and missions. Developing an effective risk management strategy first requires intimate company knowledge, according to Lucille Gallagher, a Denver-based risk management consultant with more than 30 years in the field. "When you first become a risk manager," she says, "you need to learn everything you can about the organization, including its operations, goals and objectives." In doing so, you are better able to evaluate exposures relating to every area of the company.

Align risk management vision with that of the company. The key to an effective, integrated strategy is the alignment of risk management goals and values with those of the company. At one firm, for example, the primary goal of the risk management department is to improve cash flow to the business. For every dollar the sales team generates, risk management tries to retain an extra three or four cents through loss prevention.

Identify and analyze your company's areas of risk. Once goals are aligned, developing any risk management strategy involves identifying and analyzing exposures, according to Gallagher. "Evaluation and analysis of current exposures, processes and strategies is essential in development of an effective strategic risk management plan," she says. The most proactive strategies analyze and plan for potential losses vertically and horizontally across an organization. "You have to pick apart the organization and ask the question, 'what if?' and then develop the appropriate risk management solution to address it," warns Gallagher.

Balance financials and objectives. From this analysis, risk managers are part of a management team, then establish measurable objectives, including how and when those objectives will be met.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Methods & Elements of a Solid Risk Management Strategy
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.