FIN415 Risk Management Overview

FIN415 Risk Management Overview - Risk Management Overview...

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Risk Management Overview Paper 1 Risk Management Overview FIN/415 Risk Management Overview Risk management is assessing and quantifying business risks and then taking measures control or reduce those risks. The process identifies any potential situation that could negatively affect a resource within a company and then develops a plan outlining the steps to correct all contributing factors. The
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Risk Management Overview Paper 2 importance risk management in a business is to minimize the potential risk of employee injury, reduce the abuse and unauthorized use of money; risk management is a technique used to ensuring that all resources are used in a way that is safe, logical, and efficient. Within this document organizational and business risk will be defined along with their relevance to risk management within American Express. Three additional corporate risk terms (customer risk, reputation and damage risk, and interpretation risk) will also be discussed along with their relevance to American Express. Organizational Risk Organizational risk relates to the infrastructure of the business. According to Mema and Al-Thani (2008) weak controls and poor communication can be the result of a poor infrastructure; with high standards of communication risk can be managed effectively as long as departments and teams within the firm are aware of their responsibilities and reporting hierarchy. The management of organizational risk requires the collective judgment of those individuals who are responsible for strategic planning and daily operations of an organization to provide adequate risk mitigation. At American Express it is made apparent that all measures are taken to prevent risk. To ensure that employees are aware of policies and procedures across departments, employees go through a series of training monthly. Within this training employees learn their individual department responsibilities as well as responsibilities of other departments; this is to ensure that employees know where to direct card
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This note was uploaded on 08/22/2011 for the course BUS 415 taught by Professor Barnes during the Spring '11 term at Coastal Carolina University.

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FIN415 Risk Management Overview - Risk Management Overview...

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