Risk management is a broad category that covers ground on risk analysis and dealing with it. This is the process of identifying and narrowing down potential risk. These are the coherent uncertainties that an organization may face. These risks are classified into categories through risk analysis and then there are mechanisms put in place to counter the implications. The mechanisms can either be to transfer the potential risk, minimize or reduce it and generally avoid the risk if it has negative consequences. Alternatively risk management may focus on maximizing the risk or retaining the risks if the outcome is positive. Therefore risk management courses delve into the whole process of identifying, analyzing and applying the aforementioned risk treatment techniques to effectively deal with it. The method used can be a single approach or a combination of methods. These courses do not focus on a single sector but are wide spread as risk is common in all sectors.
What the courses related to managing risk entails follows a particular procedure. First is to understand the principles and practices of risk management. Then follows the key aspect of risk identification. This involves the elaborate procedure of finding out factors that can affect the organization. There are a number of methods to use, each unique to a particular industry. The basic one is establishing the source of risk through source analysis which systematically leads to the problem analysis. Then there are other approaches based on the object of risk and the futurists approach to identification of risk. The techniques can be applied on a set of past data, intelligent expert advice and opinions that have a basis. This method usually involves identifying the risk and finding the cause of the risk.
After the first step of risk identification comes the process of risk assessment. This is a critical analysis of what the particular risk entails in terms of consequences. In this sections calculations are done to determine the rate at which the risk will affect the firm. The level of occurrence and probability of if it happening is also calculated. Then based on these calculations and statistical inference the level of risk can be determined. This aids in prioritizing of different risks inherently affecting a firm. These can be categorized as low, high or extremely high risk. Then learners at this point on can effectively create a risk profile based on all the data collected and findings.
Once the risk profile has been established comes the process of risk evaluation. The parameters put in place to classify the risks are used to evaluate the level of risk. Then using these levels certain treatments are put in place to deal with the risk. The index created avails a set of options to treat the risk. These treatments basically cover avoiding the risk, retaining the risk, reducing and minimizing the risk, the risk can be maximized, factors affecting the rate can be altered and alternatively the risk can be shared. All these factors are adequately addressed in risk management courses. After this is done comes the implementation process. This is where the policy decided upon takes effect.
The last process of risk management is the process of monitoring and review. This entails following up on the guidelines and treatments that have been put in place. These policies are targeted at effectively managing the risk and protecting the interests of the firm. The measures taken are monitored on whether they are working properly. Then the review process analyzes the measures put in place and alterations may be made to make the measures more reliable.
The international organization of standardization has put in place guidelines on risk management. This is to ensure a uniform approach in dealing with risk one ISO that deals with this matter is ISO 31000. it effectively deals with any type of risk covered in any field. Risk management can be used by an individual, group, entity, business, organizations, health providers, the education sector basically every spectrum of the modern day world.
The most reputable institutions in risk management courses in no apparent order include : Illinois state university, university of Georgia, university of Texas, university of Pennsylvania, Ohio state university and London business school. These institutions are accredited and are renowned for producing top notch risk managers.