Necessity and Development of Risk Management

Abstract

Every company faces different types of risks. Unfortunately, risks are often detected too late, so neither sufficient time nor adequate measures are available to prevent damage resulting from the realization of the risk potential. To prevent this, farsighted management seeks to identify potential risks and, where possible, to minimize the most dangerous ones for the company through appropriate strategic and operational measures. Therefore, consciously or unconsciously, each organizational management applies Risk Management. In fact, Risk Management is an inalienable and indefeasible duty of the Board of Directors. The Swiss code of obligations specifies in Article 716a under no. 1 that the direction of the organization is necessarily assigned to the board.