The amount of risk that one is exposed to when running a business is vast. Some risks may result in severe legal or financial trouble or cause the business to shut down. Mitigating these risks is a major aspect of successfully running a business.

Every aspect of a business has certain risk factors attached to it. Those who are in leadership roles within a company or organization must take the lead in risk identification and management. This article will summarize eight basic considerations for those who are responsible for risk management within their organization.

Senior employees must lead by example

The way culture is created within an organization has much to do with what those in senior positions will tolerate and what they will not. This can apply to any type of risk, whether it be personal safety, credit risk, liquidity risk, or operational risk. The leaders within a workplace set the standard for the rest to follow. Failure to set an appropriate standard will ultimately have undesirable consequences.

Leaders should be closely involved in the development, training, and implementation of risk management programs and protocols.

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