Meaning
Management framework for the systematic identification and mitigation of threats to the operational and legal status of an entity or its records. Practitioners of administrative risk management evaluate the likelihood of loss or damage to corporate assets. They build systems to prevent such losses before they occur.
This discipline focuses on the procedures that keep a company compliant with regulations and internal policies.
Policy Oversight
Oversight of internal rules ensures that the organization operates within its defined boundaries. In administrative risk management, the policy document is the primary tool for controlling behavior. Each rule is designed to prevent a specific type of failure.
This approach reduces the chance of human error.
Asset Protection
Protection of the corporate identity and physical property is a core objective of the framework. Within administrative risk management, the record of asset ownership is constantly updated and verified against physical inventories. This verification stops the theft or loss of equipment.
Compliance Verification
Verification of regulatory standing requires a constant review of filings and legal deadlines. Through administrative risk management, a company stays ahead of government requirements. A missed deadline can result in fines or the loss of a business license.
The system tracks every date.