Via the use of risk management, managers hope to identify, analyze, control, steer clear of, reduce, or eliminate the risks that can harm their company. There are many mistakes that are made in risk management and it is essential for companies to be aware the them. One mistake is the use of poor governance. Getting effective governance leads to openness and commitment which enables 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, particularly throughout times of fast development and favorable markets. There should be limits, checks and balances, and monitoring involved.Another miscalculation that managers have is following the “herd mentality”. When a company has a large quantity of activities, especially in the locations of mortgage brokers, lenders, mortgage insurers, investment bankers, and institutional investors, it is easier for a manager to ignore the dangers. When one manager sees an additional manager disregarding dangers, they may have the tendency to follow suit. In order to avoid this, everyone must be made aware of the company’s financial condition.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 totally comprehend or acknowledge the risks involved. Another faux pas managers make is accepting a lack of transparency in high-risk areas. Many managers make decisions with a lack of information. It is essential for managers to see the whole image before they make choices. Executive management must create risk awareness all through every aspect of the business.A huge 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 risks involved. If dangers are left out, managers will be left with unrealistic strategic objectives. Thus, top to a technique that can deteriorate the company’s competitive position, cause problems in the changing business environment, and cause the business to shed value.Another oversight that can have a drastic effect on managing dangers is not involving the board in a timely manner. If a issue arises, the board should be notified as soon as possible and not following the reality. It is essential to familiarize the board with the organizations risk profile.There are many dangers involved when running a business. Managers require to behave in a manner that will advantage their company and they require to comprehend the risks involved in the business and be able to method them in a realistic manner.No various other company has been able to take on our brand-new bizsafe level 2.