A new sustainable model for risk management-RiMM

Abstract

All activities of a company involve risk. In order to achieve its objectives, an organization must identify, analyze, evaluate and then treat all significant risks. According to ISO international standards in the risk field, risk management can be applied to an entire organization, at its many areas and levels, at any time, as well as to specific functions, projects and activities. An effective risk management helps top management of an organization to make optimum decisions and to prevent losses. This paper proposes a new sustainable model for risk management-RiMM. The Sustainable Risk Management model is based on the Monte Carlo method (adapted for risk management process) that is known in the literature but not or very rare applied for this issue of controlling the risks in an organization. There are proposed aspects regarding the design of the model (in five detailed steps-every step with sub steps), a software implementation and an example of a case study that emphasizes the way the model can be used (also to demonstrate its efficiency) for managing risks in an organization. At the end, on conclusions section, the most important points and the contributions of the paper are clearly presented.