Via the use of risk management, managers hope to identify, analyze, control, steer clear of, reduce, or get rid of the risks that can harm their company. There are many mistakes that are made in risk management and it is important for companies to be conscious the them. One error is the use of poor governance. Getting effective governance leads to openness and commitment which allows risk management to function successfully. If a company lacks leadership, it will undermine the risk management capabilities. It is essential to have discipline when involved in risk taking, especially throughout times of fast development and favorable markets. There must be limits, checks and balances, and monitoring involved.An additional miscalculation that managers have is following the “herd mentality”. When a company has a large quantity of activities, particularly in the locations of mortgage brokers, lenders, mortgage insurers, investment bankers, and institutional investors, it is easier for a manager to ignore the risks. When one manager sees another manager disregarding dangers, they might have the tendency to follow suit. In order to avoid this, everybody should be made aware of the company’s financial situation.Misunderstanding the “if you can’t measure it, you can’t handle it” mindset can be a blunder in the waiting. Many managers use this mindset as an excuse so that they do not have to fully understand or acknowledge the dangers involved. Another faux pas managers make is accepting a lack of transparency in high-risk areas. Many managers make choices with a lack of information. It is essential for managers to see the whole image before they make decisions. Executive management must produce risk awareness throughout every aspect of the business.A massive oversight in some companies is when they do not integrate risk management with strategy setting and overall performance management. When forming a strategy, it is important to incorporate all the dangers involved. If risks are left out, managers will be left with unrealistic strategic objectives. Therefore, leading to a technique that can deteriorate the company’s competitive position, trigger problems in the altering business environment, and trigger the business to shed value.Another oversight that can have a drastic impact on managing risks is not involving the board in a timely manner. If a issue arises, the board should be notified as soon as feasible and not after the reality. It is important to familiarize the board with the organizations risk profile.There are many dangers involved when running a business. Managers need to behave in a manner that will benefit their company and they need to comprehend the dangers involved in the business and be in a position to method them in a realistic manner.If you put in the time to develop your knowledge of bizsafe level 2 it could proven fairly rewarding in the long run.