Risk Management

Risk Management of an entity encompasses a wide range of functions and includes the following key stages:

• Examination and estimation of the entity’s current risk management model.
• Identification and classification of risks based on the entity’s products and production processes.
• Assessment and evaluation of risk appetite.
• Development of a new risk management system or optimization of the existing one.
• Staff training to work with the new risk management model.
• Development of a risk-aware culture within the company.

Nowadays, every enterprise must have a structured and clear risk management model, as it helps forecast the success of new projects and often determines the company’s future direction. Clients receive the following types of services in the risk management sphere: implementation and ongoing maintenance, strategic management of specific system elements (such as risk appetite level), business continuity implementation, and development and evaluation of investment projects.

Despite the similarities in risk management services, this segment has seen new trends that focus not on expanding the variety of services (extensive factor) but on refining their internal characteristics (intensive factor), ultimately making businesses more effective. A current trend involves the increasing complexity of risk models, incorporating sophisticated mathematical functions and probability models for evaluating key performance indicators (KPIs). The application of econometric models to forecast KPIs and determine the direction of new strategies remains a lasting trend in risk management. One of the most critical performance indicators of an implemented risk management system is the consistent reduction of business sensitivity to external factors.

The implementation of new technologies, which enhance production quality and customer service systems, has significantly impacted risk management. This has led to the emergence of cybersecurity risks. Additionally, continuous investments in innovation have made technological risk a focal point—an aspect previously considered less significant than financial risks. Moreover, confidentiality risk has regained importance due to the widespread adoption of cloud storage and Big Data in modern companies.

All these trends serve as prerequisites for the growing complexity of risk management systems. Stakeholder interest in risk management is rising, and the need to differentiate risk tolerance levels has become a pressing issue. This has led to the establishment of a more comprehensive approach to risk management in every company.