Risk management is an approach of structured and orderly government comprising all the company in order to identify, analyze and control the possible consequences of potential events. This type of management is assessed by internal auditors regarding their effectiveness and efficiency. Risk management manages risks and opportunities affecting value creation or preservation of the organization. The financial risk management is very common in almost companies and deals with various types of financial risks such as market, interest rate and credit risk, among others.
All risk management is defined as a process effected by the board of directors, management and other personnel of an entity applied within a strategic framework and through the company, in order to identify potential events that may affect the entity to manage risks to ensure the effective implementation of the goals of the organization. All members of a given organization have roles that must be occupied to ensure successful risk management for the company. However, the management of a company is responsible for identifying and managing business risks and implementing risk management in a structured and orderly approach. This type of corporate governance has become an important international notoriety in the seventies partly as a result of the financial crisis occurred during the nineties.