RISK MANAGEMENT

Risk Management

Executive Summary

Risk management plays an important part in understanding the overall problems which the organization is facing or which it may face in it future operation. Through effective risk management the organization can tackle major issue which could have resulted in destroying the company. Risk management techniques is not permanent but constant changes in it are always there .These changes helps the organization to tackle the changing risk scenario which are generated from both internal and external forces that is from outside the organization and within the organization . The latest risk management standard which is practiced in Australia and New Zealand and is based on International standard is ASNZS ISO 31000:2009 .This standard was replaced by ASNZS 4360:1999 which was effective till 2009. Thus from now the Australian companies are promoted to use the latest risk standard tool.

Risk Management

Introduction

In the present phase of economy, Organizations are facing many pressures on both the internal and external front .These factors are the main constraints which hampers the organizations to achieve its objective in a convincing manner (Francis Armstrong 2003). These constraints can be coped until and unless they are faced by the organizations, thus it is uncertain as to what impact will they have on the organization .So these uncertainty plays a serious role in achieving the objective of the company and are called “Risk”.

All of the organization though it be land, sea based or in any part of the universe they are bound to face the risk. Thus organization try to manager risk by anticipating, understanding and deciding on how tackle risk (Subramaniam ,McManus& Zhang 2009). Thus for tackling risk the management consults stakeholders, directors and professional experts who have experience in their relevant field for risk mitigation. The latest risk management standard says that organization should have a framework which integrates the process for managing risk into organization overall governance, planning, strategy and reporting process, and culture. Risk management can be applied in overall organization at all levels from different function to different activities (Williams ET .all 2006).

Although risk management is a very old management skill but relevant addition in the form of tools and reporting are regularly made so as to make the organization competent at all level, together with the economy in which it is surviving (Atika 2011). Thus these new additions in it make the organization to manage risk effectively, coherently and efficiently across the board.

Discussion

Benefits of Latest Risk Standard

When the risk management in an organization is done in accordance with the latest risk standard that is ASNZS ISO 31000:2009 the organization will be able to achieve the following objectives. The latest standards will promote a proactive management style in the organization. Management will always take action to find out new risk in the organization and then take steps accordingly. They will also be able to better identify new opportunities and threats both at internal and external level (Ammar, Kayis & Amornsawadwatana 2007). The organization will be able to achieve its objective ...