Analyzing & Managing Risk

Analyzing & Managing Risk

Risk Management

An increased reliance on information technology has created a business environment which requires companies to develop new and exciting products that exceed the expectations of their customers. These companies come up with new products and ideas that constantly require assessment in order to conform to the safety and regulatory requirements. If these technologies are disseminated to the customers without this assessment, it can have a huge impact on the experience of the customer. This experience determines the value that is derived by the customers, which affects the overall revenue generation capacity of the company. Innovation serves as a paradigm shift by providing an efficient method of solving the problem and providing a profitable business proposition for the company (Ganguly et.al. 2011, pp273-75).

However, these technologies and products bring new threats to the company because they tend to change the way things are done in the business environment. Companies need to employ the tools of risk management to identify, assess the impact of an action in order to develop a strategy to prioritize the risks. Risks management allows companies to have time and resources that could be use to mitigate, monitor and control the consequences the risk can have on the future productivity of the company.

Factors in Risk Management

In order to identify the factors that contribute to creating and developing an air of fear and violence in the company, there is a need to conduct a risk assessment. These risks assessments are conducting in a business organization with the help of trained professionals. These professionals are trained to identify the risk factors that initiate and put the stakeholders at risk of physical or financial injury. These risk factors include

Abrupt change in employee morale or behaviour

Employee stressing out in the workplace

Large number of employees not meeting their benchmarks

Lack of communication between the employees and management

Lack of employee empowerment

Employees not provided sufficient information required to perform their jobs efficiently.

Managing Risk

In a business organizational, risks mangers are appointed in order to proactively manage the threats that arise from various internal and external sources. The risk manger can use various approaches and tools in order to minimize their effect. The risk manager needs to start off with collecting and categorizing the information in the business organization that can be useful in identifying the potential threats. For this purpose, the risk manager needs to consult with the information technology department continuously to have the important data available for analysis at all times. Data is the key for conducting a successful risk analysis as it helps them to identify the trends and themes in data that could give away signs of a threat that can potentially harm the future operations of the company.

Humans are not able to multitask and need to spend considerable time in order to fully engage their senses to solve the business or social issue. Similarly, the risk manager needs to categorize these risks based on the related risk management approach that should be administered to solve ...