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High Risk Management

Risk management means to identify and assess the risk to minimize, monitor and control the probability of that risk. Risk may come from any direction e.g. fall in price or financial markets, failure of the project, liabilities, credit risk, accidents, natural causes and disasters. Risk management requires consistent monitoring of situation to identify the possible threats and to minimize the effect or to avoid the negative consequences by transferring the risk to another party or by checking the cost effectiveness of the project or by preventing the sources of negative consequences in the project. In a whole, risks can be well managed by assessing the vulnerability of critical assets to specific threats, pointing out the threat, detect the ways to reduce those risks and take the reductions measures depending the changing situation and current resources.

Risk management is based on several principles like it should be a basic part of organizational processes, it should be a part of decision making which will deal with uncertainty through systematic and structured decision taking depending upon  the best available information. It should also be transparent and inclusive as well as interactive and responsive to changes.

Risk management is based on a scientific and specific process by which one can go through any project to determine the risk involves in it. The process is consisted of Identification, Planning, Mapping out the social scope, frequency and affectivity of risks, Working within a framework, Developing an analysis and Reduction.

Identification :

Identification includes source analysis, Problem analysis, Objective determination, Situation recognition, Common risk checking, Listing the risks and their probable effects.

Assessment :

Once the risk has been identified we have to determine the severity of that risk and the probability of its occurrence. After this we have to organize a risk management plan. This risk management plan will have the vulnerable property and its statistical data, the risk probe depending upon the timeframe, the potential resources and approximate amount of loss and the necessary decision to be taken in different situations. Method to follow in there will be the multiplication of the Rate of occurrence by the impact of the events which will give out the total RISK.

Theses risks can be dealt with by avoiding or eliminating the risk, by mitigating or reducing the risk, by transferring the risk or by accepting that risk. The risk management plan requires a purpose applicable and effective security controls for managing the risks. A schedule for control implementation and responsible persons for those actions are the prerequisites for an ideal risk management plan.

Implementation :

Then time comes when these measures have to be implemented in the organization. These implementation and observation are essential to flexible decision taking and managing the risks to acquire the company’s long term goal.

Limitations :

Risk management’s limitations mostly depend on improper assessment or prioritization of risks. Spending too much time in assessing and managing may bring in a devastating result. Again this risk management is very much dependent on flexible and instant decision making. It is also essential to know the distinction between risk and uncertainty to ensure an effective risk management plan.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.