Organisations in the region need to implement a risk management system that is able to face any challenges brought by unforeseen events such as high inflation rate and the global economic downturn, said an expert.

Companies need to evaluate their capabilities to tackle risk in terms of social, cultural and psychological factors, added Professor Edward Borodzicz, director of the International Center for Business Resilience (ICBG).

He was speaking at a Masterclass in risk and uncertainty hosted by ICBG, one of the centers under Abu Dhabi University Knowledge Group (ADUKG), the professional training and development arm of Abu Dhabi University (ADU).

The one day seminar held at ADU campus in Khalifa City which delved into the challenges raised in terms of its realistic assessment and effective management as well as the impact of risk management applications to business continuity and regulation.

Professor Borodzicz said that managing risk is important to ensure economic growth will remain buoyant despite increasing economic risks in the region.

The Masterclass also provided a structured understanding of the nature of risk, and its larger implications on the continuance and regulation of a business.

It highlighted the outcomes of effective risk management on the structure of an organization, and discussed recent developments in the social and management sciences which reveal how to identify and evaluate the social, cultural and psychological factors affecting risk perceptions.

Professor Borodzicz said: “Management of risk is a necessary tool to ensure business continuity and sustainability.”

“Modern-day business is faced with innumerable challenges, relating to insurance, corporate governance, project and operational risk, compliance, health and safety, business continuity, contingency planning and security failures,” he added.

“While it’s possible to be insured against some of these, there are others which are the direct responsibility of the organization, and in most cases there is no prescribed course of action to relieve stakeholders of the organization of the crisis,” he concluded. – TradeArabia News Service