Abstract:
Risk management is an area of paramount importance to an organisation. Because every company is exposed to risks, effective risk management is necessary for the progression of a business entity. In spite of the well structured process in managing risk exposures at FEDCO, the company still faces the problem of embezzlement, stealing, theft, inaccurate and unreliable information provided by officials on the field. The general objective of the study is to review the consequences of risk management on the performance of companies. The specific objectives included: to review the risk management processes, practices and policy of the company; to understand the level of awareness of staff of risk management practices of the company; to review the measures adopted to minimise losses through good risk management processes.
Description:
Risk management is an area of paramount importance to an organisation’s success (Williams, 2002). Every company is exposed to risks, effective risk management is necessary for the progression of a business entity (Williams, 2002).According to Sobel (2004), understanding the source of each risk helps to manage the risk at its source instead of its outcome. If the source of a risk is not identified, the risk may not be managed as effectively and efficiently as desired by management.
