Through the use of risk management, managers hope to identify, analyze, control, steer clear of, minimize, or get rid of the dangers 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 mistake is the use of poor governance. Having efficient governance leads to openness and commitment which enables risk management to function effectively. If a company lacks leadership, it will undermine the risk management capabilities. It is essential to have discipline when involved in risk taking, especially during occasions of fast development and favorable markets. There must be limits, checks and balances, and monitoring involved.Another miscalculation that managers have is following the “herd mentality”. When a company has a large amount of activities, especially in the areas of mortgage brokers, lenders, mortgage insurers, investment bankers, and institutional investors, it is simpler for a manager to ignore the risks. When one manager sees another manager disregarding risks, they may have the tendency to adhere to suit. In order to avoid this, everybody should be made conscious of the company’s financial situation.Misunderstanding the “if you cannot 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 comprehend 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 entire image before they make decisions. Executive management must produce risk awareness all through each aspect of the business.A massive oversight in some companies is when they do not integrate risk management with technique 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. Thus, leading to a technique that can deteriorate the company’s competitive position, trigger issues in the altering business environment, and cause the business to lose worth.An additional 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 quickly as feasible and not following the reality. It is essential to familiarize the board with the organizations risk profile.There are many risks involved when running a business. Managers require to behave in a manner that will benefit their company and they need to comprehend the risks involved in the business and be in a position to approach them in a realistic manner.View a lot more video clips concerning bizsafe level 2.