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Risk management is part of good management
Author(s) -
Bendixen Lisa Marie
Publication year - 1995
Publication title -
environmental quality management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.249
H-Index - 27
eISSN - 1520-6483
pISSN - 1088-1913
DOI - 10.1002/tqem.3310050210
Subject(s) - risk management , risk analysis (engineering) , business , enterprise risk management , key (lock) , it risk management , management system , risk management information systems , process (computing) , control (management) , risk assessment , hazard , process management , operations management , computer science , finance , engineering , computer security , information system , operating system , electrical engineering , management information systems , chemistry , organic chemistry , artificial intelligence
As the use of hazard and risk assessments becomes more commonplace, the need for and importance of an overall risk management system become apparent. Such a system allows companies to prioritize both their efforts to identify and understand risks and their allocation of resources to manage and control risks. In the future, the most effective risk management systems will be integrated into other business processes and management systems, to ensure that their value as well as their costs are recognized and measured by line operations. For example, chemical and petrochemical companies such as BP Exploration, Monsanto, and Union Carbide are improving on well‐established risk management systems by increasing their businesses' involvement in and ownership of the process. This article summarizes the key elements of a risk management system and uses the lessons learned by various companies to define best existing and emerging practices.