RISK ANALYSIS & TECHNOLOGIES

Risk analysis & Technologies



Risk analysis & technologies for enterprise

Introduction

In the economic landscape of the 21st century, an organization's business model is being challenged constantly by competitors and events that could give rise to considerable risks. A firm must struggle to find creative ways to reinvent its business model on continuous basis, in order to maintain expansion and create value for stakeholder. Companies make money and augment stakeholder worth by engaging in activities that have some risk, yet stakeholder also tend to value and reward some level of constancy in their expected profits. Failure to recognize, evaluate, and administer the key risks facing the firm's business model, nevertheless, may unexpectedly result in major loss of stakeholder worth Kakabadse (2000, pp. 15). Thus, senior leadership must put into practice the processes to administer any considerable risks confronting the firm. This dual liability of growing the business and managing risk has been noted by Jeffrey Immelt, Chairman and CEO at General Electric Co., when he described his position at GE: “My job is to figure out how to grow and manage risk and volatility at the same time.”

Entrepreneurship maybe described as a set of diverse activities that constitute the business expansion. These activities are starting with design, project growth, assessment, investment, start-up, extension, yielding, re-assessment, and cycle enhancement. All of such actions are significant for sustainable growth of the business Scott and Bruce (1994, pp. 50).But during this step-by-step business process, there are many situations where the whole process can be jeopardized by events that may have more or less influence. The entire course is considered in the finest way. But in spite of how ideal the implementation plan is, there is a firm risk that a number of incidences will deviate plan from its pathway until a definite scope. The likelihood of incident occurrences that will deviate execution of the plan is defined as a Risk.

The Risk is an element that has to be faced by every business whether new or old. There is always a chance that something will occur that will change the expansion of plan. Since the Risk is the inevitable part of the business, it is necessary to provide Risk Analysis and Risks management, in order to avoid harmful occurrences and to improve consequences, if they appear Shalley (1991, pp. 178). The Risk analysis and management of the Risk is not concrete as other business indicators, therefore it cannot be considered accurately. In order to expect the unexpected, it is necessary to use subjective judgment in conjunction with structured analytical tools. During the Risk analysis three main areas are in the scope of the Risk Analysis Tool:

Occurrence - This Risk analysis indicator expresses the likelihood of Risk to occur. Higher the likelihood, the higher is the rating.

Impact - This Risk analysis pointer shows how big collision the Incident will make in case that happens.

Detection - Failure to detect the event before happening is increasing the Risk. This risk analysis indicator shows detecting ability ...