Description
For the following two questions please write 250 words for EACH questions, as well as include APA for Each one, too.
- How do Key Risk Indicators help companies identify emerging risks?
- How do Key Performance Indicators help companies to manage existing risks?
Also, please answer to the following paragraphs (attached) with 100 words each showing substantive responses that extend or provide alternate views. Include APA if possible.
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Explanation & Answer
Attached.
OUTLINE
Title
Name
Institutional Affiliation
Professor’s Name
Date
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1
RISK MANAGEMENT
Risk Management
Name
Institutional Affiliation
Date
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RISK MANAGEMENT
RISK MANAGEMENT
Risk key indicators are unique tools that are available within the risk management and assist in the
predicting of any possible or upcoming risk and also mitigating the risk. Risk key indicators help
to prevent any adverse and unfavorable event which might affect the company negatively. Risk
key indicators recognize the leading signs in the organization’s environment hence giving an early
signal (Frigo, Mark L. 2015). Risk key indicators play a significant role in the initial monitoring
of risks in an organization. Risk key indicators determine the risk level and their exposure to the
management; thus it becomes more comfortable for the companies to mitigate them at earlier
stages. Risk key indicators are considered measurable thus they could be computed to ensure
awareness of any possible risk which could be determined.
These critical tools alert the organization about the upcoming unfavorable events, which makes
the company get prepared after determining the risk trend. The key risk indicators, therefore, give
the organization the opportunity to examine the risks through finding ways in the prevention of
those crises and mitigating them before they cause more effects. Risk key indicators characterized
as educational; in this case, these tools help the managers in making the right decisions when a
possible risk faces them.
Risk key indicators are useful to the managers as they help these individuals to understand the
level of risks and how these risks could...