Managing Risks in Commercial & Banking-Free-Samples for Students

Question: Discuss about the Risk Management Practices in Insurance Companies, Manufacturing, Services, and Banking Sectors in Namibia. Answer: Risk management refers to the assessment of financial risks, their nature of exposure to the company, and the formulation of processes or strategies of mitigating the identified risks. The financial sectors are associated with various risks which require proper management hence they embrace various practices so as to avoid certain risks. Risk management helps to minimize the risks exposure of the organizations. (Ghosh, 2012). The financial sectors embrace the idea that risk management requires the identification of the potential losses by assessing the creditworthiness, recognizing the risk, assessing the risk, and developing policies to manage it and vindication of the risks. In Namibia, the banking sectors normally adopt the Basel Accords to track, report, and expose unscrupulous behaviors and other operational risks. Some other practices include outlining the risk exposure and prioritizing it. Some risks may pose to be more dangerous to the organization than others hence they are given the first priority. This means that the potential risks should be identified and given a scale of preference. The risk matters should be in a common language such that every person is able to understand the problem and participate fully in coming up with solutions (Hull, 2012). The organizations can also hire the experts to develop risk management strategies. The financial sectors should centralize the risk management policies so that it becomes easier to manage them. The development of the risk management tools is another practice using the IT systems. Companies need to centralize their communication lines and operations to establish unity and order of command within the enterprise. References Top of Form Ghosh, A. (2012).Managing Risks in Commercial and Retail Banking. New York: Wiley. Press. Bottom of Form Top of Form Hull, J. (2012).Risk management and financial institutions + website. Hoboken, New Jersey: John Wiley Sons, Inc. Press. Bottom of Form Top of Form Bottom of Form