FAQ Frequently Asked Questions on Risk Management
Below is a series of frequently asked questions on risk management with corresponding answers. If you have a query that is not addressed here please email us and we will reply with an answer as soon as possible.
- What Risks Does RAMSI Cover?
- RAMSI covers all aspects of risks associated with marketing and trading of commodities and financial instruments. More details can be found in the Risk management solutions section of the site
- Why Is Risk Management So Important?
- Increasingly risk management is becoming an integral part of overall company business strategies as it enables companies to assess and evaluate risks in relation to their commercial activities. Accordingly it enables firms to put in place relevant mitigating strategies and controls in order to minimise losses.
- Is Risk Management A Regulatory Requirement?
- Only if the company is regulated by a regulator such as the Financial Services Authority (FSA) in the UK. Most companies adopt risk management principles as ‘best practice’ thereby enhancing their reputation within their industry.
- To Qualify As Risk Managers, Do My Employees Have To Take Exams?
- No, risk managers that are identifiying and managing the company’s risk do not have to take exams. RAMSI provides bespoke training solutions to best fit your exact requirements.
- Where In An Organisation’s Hierarchy Is Risk Management Situated?
- The Risk Management team should be fully independent from (but informed of) the Commercial team. This is to ensure that their risk evaluations and reports are not influenced by commercial activities, remaining fully independent.
- How Does Risk Management Add Value?
- By assisting senior management in understanding the risks that the company is taking and further suggesting and implemeting mitigating tools in order to manage the identified risks.