Cholamandalam MS Risk Services Limited

Risk management is defined as identification, assessment and economic control of those risks that endanger the assets and earning capacity of a business.
A risk can be tolerated if:

    The likelihood of its occurrence is sufficiently remote.
    The consequences are not severe.

Risk can be eliminated or reduced by:

    Changes in the processes.
    Transferring all or part of the risk.

Each company’s Risk Management system is different because:

    Their risks are different.
    Their operations and organisations are unique.
    Their corporate culture is unique.

Basic activities in any risk management system are:

    Risk Identification.
    Risk Assessment.
    Risk Control.

Risk Management is a process through which the companies control their level of risk and the key elements of an effective risk management programme are: policy, procedures and standards.

    Policy describes the objectives of the Risk Management programme.
    Procedures determine how the policy will be implemented.
    Standards provide guidance on particular issues.

Risk Management is particularly necessary to a business which has:

    A number of different sites.
    A size that precludes any individual knowing the details of every threat.
    A business with overseas operations.
    A range of processes.
    Many subcontractors, or suppliers or other business associates who are not under the direct control of the business.
    A site that it has used for more than thirty years. Old sites sometimes have equipments and work practices dating from times when lower standards were acceptable.

In short, the larger or more complex the business, t
+ Read More