20.1 Five-Step Corporate Risk Management Process1
Corporations have spent considerable effort in recent years devising strategies for assessing and managing the risks that they are exposed to in doing business. Any risk management approach generally starts with a procedure for identifying the various risks the firm faces and ends with guidelines for dealing with those risks. The following five-step process illustrates how some of the best-run companies manage risk.
Step 1 : Identify and Understand the Firm’s Major Risks
As it is not possible to manage risks that have not been identified and understood, ...
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