RISK IDENTIFICATION

Risk Identification

[Name of Student]

[Nam of University]Abstract

In this paper risk identification is investigated as a basic stage in risk management. The risk identification stage as the first stage in the risk administration method is offered and its leading function for productive risk administration is proved. The basic periods that are necessary for construction of the frame approach for risk identification are characterised: causes of risk-hazard, factor-peril-resources revealed to risk. Aclassification of risk causes - personal, communal, political, operational, economic, legal and cognitive natural environment - is proposed. It permits covering all kinds of risk opposite the organisation. Agrouping of the resources revealed to risk such as physical, human, and economic resources is introduced. It is founded on a practical concern of the risk positions in the organisations.

Risk Identification

Introduction

Risk is an inherent part of business and public life. Dynamic market relatives boost the doubt of the environment where enterprise and public organizations work. Keeping high competitiveness needs the associations to start plans that may have distinct possible outputs. The likelihood of these outputs happening determines the risk in organisations' activity. Risk wrappings all aspects of organizational undertakings and it is encompassed in all administration levels. Risk administration has become a main part of the organisation's undertakings and its major aim is to help all other management undertakings to come to the organization's aims directly and efficiently. Risk management is a relentless method that counts exactly on the alterations of the internal and external environment of the organization. In truth the alterations in the natural environment need relentless attention for identification and command of risks.

The aim of this paper is to enquire risk identification and to recognise its function in the total risk management method, to define the rudimentary terms utilised to display the characteristics of the risk, to enquire the peculiarities of the identification as a process and to present a general approach for risk identification.

Problem description

Risk identification is the first stage of risk management. It evolves the cornerstone for the next steps: investigation and command of risk management. Correct risk identifiraction double-checks risk administration effectiveness. If risk managers do not do well in recognising all possible losses or gains that challenge the administration, then these non-identified dangers will become non-manageable (Greene and Trieschmann, 1984). The administration will not account for them and will not take any actions related to them and the penalties could be very unexpected. The inability to recognise likely profiting dangers is as inappropriate as non-identified dangers associated to the loss. Missing a good affirmative likelihood that an organisation seeks is a difficulty equal to bearing losses (Dickson and Hastings, 1989).

Risk identification has to be advised in a broader way. The vigilance of managers should not be intensified only on what can be insured or mitigated. Risk identification should start with the rudimentary questions:

How can the organisational assets be threatened?

Whead covering adverse effect can avert the association from accomplishing its aims?

What favorable likelihood can be revealed?

Starting the identification method at this starting issue can form a ...