Which functions are must-followed for risk management?

Every business has risks as compulsory.There is a proverb,"No risks,nobusiness".Actually,businessmen get profit on their risk.Risk means possibility of harms.So,you must have to take risk for any business.

If you unable to handle risks then your business cann't prosper,So,it is important to manage risks.The works of risk management is finding out the source of risks,measure the risk in money and handle them. It is really a difficult task.Let's discuss about risk managog and making easier it.

You should five steps to manage any line of sil which is-

1.Detecting the sources of uncertainity and risk:The primary of risk managementi is to find out and mark which sectors of business are in risk.Business experience,nature of trade,economical position are working here as a guide.Analysis of business balance sheet may be helpful too.

2.Explaining the nause of risk:The next of risk management is explanation of risk kinds.There are various kinds of risks. Management system of them is also different.So,if you fail to understand the kind of risk then you cann't decrease the risk.

3.Measuring of risk:After marking source of risks it is important to fix quantity after measuring risk.For this,you can use probability distribution,standard variation etc.

4.Selecting the best method of handling risk and it's application:There are lot of ways to handle risks.But,which way will be perfect for your business-selection of this is so important.For this,You should to consider possibility of handle risk.Risk management skill depends on this step.

5.Taking steps for reduction of risk:It is the ultimate step of risk management.You never get she from risk but handle.So,after passing this steps you will reach the annual stair .In here,your risk management skill get shape.

Risk managemet is really important and difficult.You should maintain best care.Don't worry,success is your!