Risk Management- The Step Of Implementation

Risk Management is very important for every company to reduce uncertainty.
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Prior to developing a risk management program, develop a policy statement on risk management. This sends a message to staff about the importance of a risk management program.

The policy statement should include the following:

* The mission of the risk management program (i.e., to reduce risks)
* The linkage between the risk management mission and the company mission
* The actions staff and volunteers can/should take to manage risks
* The identification of the person in the company responsible for ongoing risk management efforts (usually the director)


There are a few steps for every organisation to implement the Risk Management: Please find the following for your guideline in general

1. Distribute the memo to all HOD

* Brief about the Risk Management
* Request each of them to state their preliminary assessment on the risk areas in their department, fill up the checklist and submit to Internal Audit Department.

Remarks: Enclosure:

* Initial checklist for them to fill up their risk area, impact and controls they have Complete set of Risk Management Framework (for further reference)
* Schedule of whole process of Risk Management

2. Meeting up with each Head Of Department

Remarks: To discuss and/or obtain further clarification on the risk area, impact and controls, based on information in their respective checklist.

3. Analysis of the risks for each department

Remarks: To incorporate into Risk Rating Matrix.

4. Compile all risks into one list

Remarks: To prioritize the risks that exists in the group.

5. Decide the treatment or controls to eliminate or minimize the risk

Remarks: According to the priority (start with the most critical area to the least critical).

6. Produce report

Remarks: Produce report by stage:

Stage 1 – For the most critical area

Stage 2 – For the lesser critical area

And so on.

(Purpose: for immediate action)

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