Summary 

Risk management is essential part of any economic process, as risk affects person’s attitude to a company income. Risk management aims to actively control threats affecting a person or a company. It implements a reduction of the loss caused by different risks and catastrophic outcomes. The more unexpectable the risk is, the more recourses it need to be avoided and the more we know about the risks, the more possibilities there are to deal with them.

The effective means of  avoiding risks and losses are: risk management and insurance. Risk management represents the unity of  activities used for risks avoidance or reducing.  

Risk  management requires lots of expenses and that is why  it is mainly affordable for huge companies and according to their  experience, any of the companies, no matter what size they are, are able to implement certain elements of this system. More correctly, to separate out the main risks and put risk reducing activities  into effect.      

On the first stage, the company has to define the risks, risk causing factors, risk management and the  constituent parts of the management system.  

The aim of the company risk-management  should be the analysis of the risks and assess them on economic level. The risk management body has to offer activities to minimize risk affects, work out the position towards the risks – to receive or to avoid them. The most commonly used methods in avoiding risks are:  Avoiding risks, preventing risks, conveying risks, reducing risks and risk insurance. 

The main task for risk-management organ is   to observe risk development and permanently renew risk-list the company faces. The report, prepared   by risk-managers, is to be sent to the financial director at least twice a year.  With cooperation of the observing council (in case it exists) the head office of the company, at least once a year, should define the upcoming risks and the companies dependence and attitude towards abovementioned risks.