Risk management function

In order to implement risk management at a company and develop a risk management system, it will be necessary to set up a risk management function - in other words, an area of responsibility for risk management.

In complex organisations, it may be appropriate to set up a planning and control unit for risk management which is not involved in the company's operational business. Depending on the nature and scope of the task, responsibility for it may also be assigned to management or to a specially designated risk owner.

The planning and control unit is responsible for the conceptual development and the associated implementation of risk management systems, such as the setting up of a complaints department or the introduction of a recall plan or an environmental protection concept.

Key functions include sensitising the company to hazards which are relevant to its internal and external liability and being active in the area of risk identification and evaluation. Responsibility for implementation then rests with the member of staff responsible for the particular process. In other words, at the forefront of the risk management function stands the holistic identification of the risk, the transparent representation of the risk, and the associated acceptance within the company. In the long term, this will ensure the company's commercial success, its competitive edge and a high degree of added value.