Risk management essay

Risk management essay

 · Risk management is hugely important to every project to identify all the potential risks. An uncertain event or set of circumstances if it occurs, will influence the achievement of the project objectives, which could be detrimental to the project success. “Risk management is the process of identifying, assessing and controlling threats.” The Risk Management Plan One of the risks you anticipated for the project was the late delivery of the prototype from the vendor. You adjusted your project schedule to minimize the impact of the risk, built in a penalty for late delivery, and created action plans in case the vendor delivered late Risk Management Essay. Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities

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Internal and external environments of an organization pose a wide range of risks to an organization and managers should establish strategies to manage risks for the long-term survival.

Risk management strategies are enhanced by the culture of the organization and this can be maintained by inculcating a culture of good values, believes, norms and attitudes.

Changes in the global markets today create a huge risk to organizations and this creates risk management essay need to have mechanisms to solve organizational problems in a professional manner. Therefore, risk management entails setting goals and objectives and ensuring that they are achieved in the most effective manner, risk management essay, managing change that is brought about by introduction of new strategies, managing cultural and technological diversity among other tasks.

Risk management covers a wide range of activities and aims at establishing better strategies of promoting the success of an organization. Enterprise wide risk management involves managing risks and seizing opportunities which help an organization to achieve its objectives. Managing risks as opportunities come is very important in maintaining the success of the organization.

Creating value to the shareholders capital is the major bestowed upon the managers of an organization. This can be achieved by identifying opportunities available in the business environment and seizing them actively to ensure the interest of shareholders is protected.

Therefore, EWRM is defined as an approach used to manage enterprises by controlling risks Gupta, It is important to note that organizations are founded on goals and it is the achievement of these goals that differentiates successful organizations from others.

There are various risks associated with achieving goals and the management requires to develop strategies to reduce the effect or evaluate the impact such risks have on the organization. Organizations set goals to be achieved and these goals can only be achieved by proper planning of all resources. Therefore, it is evident that EWRM is an important aspect that determines how organization succeeds in turbulent market conditions. Managers use risk management as a benchmark to measure the achievement of an organization.

An organization that is able to manage all the risk elements successfully acquires better position in the market. Most successful organizations have ventured in risky businesses and this has created a lot risk management essay wealth to the shareholders.

Operating in high risk activities requires establishing a strong risk management system to ensure that the organization can not make a lot of losses in case the event of risks occurring Mbuya, n. Governance, risk and compliance are management tools that comprise of three aspects. First, governance which refers to the process by which the top management team apply to control, plan, organize and direct the resources of an organization to achieve the goals which have been set by the shareholders.

It involves making decisions by the top management by using the appropriate information. Secondly, risk management involves the identification, analysis and response to the risks affecting an organization. To manage risks an organization can control, risk management essay, avoid, accept, or transfer the risks to other parties.

Lastly, compliance deals with conforming to all requirements stipulated by the concerned stakeholders Mohapatra, n. According to Wilson and Dobson governance, risk and compliance is related to EWRM in that the management puts measures to regulate the activities of the organization to ensure that all rules and regulations are adhered to. By complying with the rules and regulations of the organization, the management ensures that it avoids the risks of penalties related to legal systems of a country.

The management evaluates the costs related to the implementation of various strategies and this helps solve some problems that may affect the smooth operation of an organization. Therefore, we find out that there is a close relationship between GRC and EWRM because the two interact with each other. However, there are few differences between GRC and EWRM in that GRC deals with how organizations are managed and how the organization benefits when all rules and regulations are adhered to by all stakeholders.

It also explains the relationship between the internal and external environmental elements and how they interact with each other. Risk management essay wide risk management EWRM as an assurance tool is increasingly being mandated; indeed it is embedded as a concept in ISO This statement is a fair comment on the state of play today. Many organizations have realized the importance of managing risks and risk management essay has been facilitated by the intensifying number of risks in the market environments today.

To establish better strategy for improving the competitiveness of an organization can only be made possible by managing all the risks that may be associated with the implementation of such strategies Loras, There are various threats that managers risk management essay when maintaining values in an organization.

In competitive environment organizations face threats which may hinder accomplishment of the stipulated values, risk management essay.

Some of these threats may be cause by changes in internal and external environmental factors such macro and micro economic variables, risk management essay, legal factors, technological changes, political environments among others Champoux, The response to these threats determines the success of an organization. The management responds by studying the changes in the market conditions as well as other factors that may affect the activities of the organization, risk management essay.

Some examples of the responses that can be offered to these threats are change management, making better decisions, establishing stronger strategies, collaborating with consultants and other measures Klein, Change management is an important aspect that managers need to learn when dealing with threats and responses.

Change is the opening through which people or organization focus the future risk management essay bringing new systems which create success. Change can be introduced by an individual person or organization or it can be happen by itself. Change brings opportunities for growth and improvement. The management of an organization should become fast in introducing and implementing change since the world is changing at an alarming speed.

Change management focuses on developing future structures of a business to improve the performance as well as introduce new technologies which risk management essay the performance of the organization. The path towards establishing future structures should be well monitored to create a smooth transition for the organization to achieve the desired changes as well as manage risks.

Crisis within the organization create the need for risk management essay change and the management should be prepared to handle all changes that might be required by the organization. The internal and external business environments are changing at an alarming rate and change management is an essential tool for capturing new developments being introduced, risk management essay.

Competition in the global markets has increased and this is forcing managers to introduce innovation in the management of the systems within an organization in order to catch up with the changes Luecke, Many changes introduced within risk management essay organization fail due to poor preparedness as well as management of the entire process.

The lack of appropriate frameworks to support the implementation and management of change within an organization are the main causes of failure by many changes introduced by the management Burnes, The nature of organizational change has been assumed for a long period of time by managers and contemporary studies have indicated that strict measures should be introduced to cater for the gap between the success and failure of the changes being introduced by an organization.

Contemporary studies have identified that the pace of change management has increase in the recent years and managers are becoming more responsive to the changes in the environment Burnes, There is no organization or industry is immune from change since change is caused by many internal and external factors.

The introduction, implementation and monitoring of change requires the collaboration of all stakeholders to an organization. Change cannot be achieved by an individual department, or sector. The management should respond quickly to internal and external changes required by the organization. Delays in response can retard the achievement of appropriate change. Since new technologies are being introduced in the global markets each day, delay in establishing change may result into the organization adopting old systems risk management essay are not beneficial.

Adequate research should be done into the recent changes in the market. There are no universally acceptable processes of creating change in an organization. The management should apply the best structures relevant to the organization Burnes, According to Kotter and Heskett culture refers to the beliefs, attitudes, values and norms that a given people have. The organizational culture is defined by the stakeholders and this is reflected in the nature of activities the management sets, risk management essay.

The culture of an organization is inculcated in the GRC by creating systems of compliance, risk management essay. Culture establishes the norms to be observed by all risk management essay and this creates the basis of compliance. Risk management essay explains the extent to which the management can take risks while managing the resources of an organization Klein, risk management essay, There are organizations which are risk-averse while others are encourage taking risks as risk management essay basis of operation.

To achieve appropriate governance the management requires establishing better strategies of promoting the cultural morals of an organization. Cultural morals have become a major concern in the business world today because organizations are operating in multicultural environments, risk management essay.

Working with people from different cultures requires understanding the cultures of each person in the organization Global human resource management involves dealing with people from different cultures and different backgrounds. There are several advantages and disadvantages of operating global human resource management. Some companies have failed while others have acquired great success after extending their operations across the borders. Proper strategies are required in the management of employees with diversified cultures.

The political, legal and social environments in the global labor markets are different and the management should be very accurate in establishing the appropriate strategies which match the particular needs risk management essay the different employees, risk management essay.

With the risk management essay in globalization many people are seeking employment across the borders of their domestic markets. However, risk management essay, organizations dealing in the international scene face some challenges when relocating employees from one country to another. There are several barriers which hinder managers of multinational companies from relocating their employees from one country to another.

These barriers relate to the physical conditions, legal aspects, economics, and cultural barriers Golembiewski, Complexity in the diverse cultures makes is difficult to operate in many countries. Several companies have failed in their strategies to operate in the risk management essay scene due to due to poor integration of the ingredients required in multinational human resources management.

Global human risk management essay management is a strategy that is gaining a lot of importance especially after the spirit of globalization started. Several companies have improved their performance after establishing proper strategies to manage their employees while others have failed due to poor integration of the required aspects of global human resources management.

The culture of an organization dictates the shape taken by the management goals and objectives. The success or failure of organizational change is determined to a great extent by the culture in the organization. Cultural change is required for the achievement of successful change risk management essay strategies. The globalization of many organizations has created a scenario where multinational organizations are operating in diverse cultures where many people are involved.

The integration of each cultural aspect into the processes of the organizational change is essential for the success of the organization. The global business requires applying the best strategies to achieve a competitive edge, risk management essay.

Many global organizations have failed to venture into some countries due to poor analysis of cultural aspects of the people it is involved in, risk management essay. the management of change is a very important aspect in achieving success in accomplishing global goals. The management of an organization must analyze the cultural needs of all consumer groups. This will enable the management to match the cultural needs of the various consumers into the products being manufactured by the organization.

In addition, the employees of the organization need to understand the cultural aspects of the organization in order to establish goals which are achievable and which will create success to the organization. Both the internal and external environmental factors should be well analyzed when integrating a culture that will create successful change management strategies Schein, Changing culture is a systematic risk management essay which requires risk management essay strategies to ensure all stakeholders internalize the required changes.

This process is affected risk management essay factors such as the complexity, ambiguity and powers the cultural aspects of the organization. The main architects of an organizational culture are the top management individuals.

Risk Analysis and Risk Management

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Risk Management Essay | Bartleby

The Risk Management Plan One of the risks you anticipated for the project was the late delivery of the prototype from the vendor. You adjusted your project schedule to minimize the impact of the risk, built in a penalty for late delivery, and created action plans in case the vendor delivered late Risk Management Essay. Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities  · Risk management is hugely important to every project to identify all the potential risks. An uncertain event or set of circumstances if it occurs, will influence the achievement of the project objectives, which could be detrimental to the project success. “Risk management is the process of identifying, assessing and controlling threats.”