Running head: RISK MANAGEMENT AND THEIR INFLUENCES

Risk Management and Their Influences on Corporate Governance
University of Maryland University College
Graduate School of Management& technology

Executive Summary Implementing a risk management process in line with organizational or business goals and objectives is vital for successfully managing or mitigating risk. Risk identification, analysis, handling, and monitoring should be addressed by all stakeholders. The process should be implemented in accordance with a pre constructed Risk management plan. A well developed risk assessment will make use of the considerable number of assessments, planning, and formal risk identification performed to provide a picture of the composite or overall risk associated with an organization. Also an effective risk mitigation strategy will provide a significant increase in the confidence level that a business or organization will meet its cost, schedule, and performance requirements.

Introduction

Risk is an important concept that plays a major role in the success of a business and organization. Risk is defined as the exposure to injury or loss. Every decision that we make as human beings contain some form of risk and most of the time the weight of the risk determine whether we will follow through with an action or not. Risk Management is a systematic way to keep those risks in check and a way to limit those risks in impacting the goals and life-span of an organization or business. Fred Kaen defined risk management in his article Risk Management, Corporate Governance and the public Corporation as the identification, and management of organization or enterprise exposure to financial risk. However, not only does risk management identified financial risk of an organization, it also identify and analyze the uncertainties