Selecting the Proper Model for Risk Management

Abstract

The sets of activities performed across all organizational levels can include the opportunities, risks, and uncertainties that may affect goal realization, prompting executives to identify and manage them at different levels within a risk management framework. Risk management requires steps and measures that can be best taken by following the models and standards developed by different researchers and institutes based on extensive experiences and studies. However, the review of these studies and instructions indicated considerable differences and similarities, something which can cause confusion in the selection of the best risk management model to address current needs and organizational conditions. With a thorough review of literature, this paper analyzes the studies, models, and standards of risk management and highlights their differences in definitions and processes. Finally, a solution is offered to select the right model which can properly satisfy the current needs for risk management.