Risk and risk management

Today I would like to speak about risk, about its types and how to avoid it.
Firstly, I would like to mention a special magazine, called “Risk” which s published every month. It was launched 18 years ago. It mirrored the situation of risk management . There you can find some recommendations.
Risk you can divide into some types. For example, financial risk, political risk, risk , which is related with the person and so on.
• Sky diving
• Romance
In that magazine risk is described as a condition of individuals – humans and animals – that are self – aware. Organizations, governments and companies are not self – aware so they are incapable of being at risk.
In 1993 a report of financial risk management appeared. Ten years later people spoke of independence anymore. If you read some books of this time, you will notice that independence is hardly mentioned. Here is what the word independence means:
• Risk managers do not take risks on the firm welfare
• Employees can not switch on from one role to the other one.
There we can also speak about credit and guarantee risk because it is related with finance. .These will reduce profits of companies if they go wrong. It means that companies have to increase sales buying on credit.
Organizationally, financial risk management is implemented in different ways. Risk can be related with market, credit (as it was mentioned)...

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