Organizational Risk Management

Introduction

Organizational Risk Management includes two main factors, that include risk planning and resource identification. Risk planning is the process of pre hand planning for the upcoming future risks, and how to minimize or avoid them. In order to minimize the risks it is important that resources are identified and resource allocation and planning is done. This in turn, ensures that risk for the project failure is minimized and that resources are never distributed unequally, while the right distribution of the right resources also ensures that the project reaches its success. Risk planning and Resource identification are the key foundations for the risk management in the justice and security organizations.

Discussion

Risk Planning and Resource Identification in Justice and Security organizations are a part of Risk Management system, which includes the following steps:

Risk Assessment

There are two types of factors that are involved in Risk Assessment; the first one is the frequency of the risk being analyzed and the other one is the analysis of risk. There are certain levels of risks that are pre set, and each risk based upon the set standards is given a label based upon how frequently that particular risk is to occur, these labels include “Frequent”, “Likely”, “Seldom”, “Occasional” & “Improbable”.

The other factor of the risk assessment include the analysis of the risk on the project, this is comparatively a subjective analysis as compared to the analysis done in the first factor. There are still ways in order to reduce the amount of variance in the subjective analysis under this factor as there are some set standards on which the subjective assessment is to be made, which include statement of the work, plan of the project & budget etc. Based upon these, there are certain ranks or grades that are to be allotted to each of the risks, which are:

Catastrophic

Critical

Moderate

Minor

&

Negligible

The ranks are according to the level of criticality of the risk involved or expected, with “Catastrophic” being the most risky and “Negligible” to be the least risky and so on.

The levels of risks are majorly on the basis of the areas that are by the risk, the areas which are under involve, the cost, the schedule, the scope and the performance quality (Stulz, 2009).

Risk Mitigation

The step of risk mitigation steps include establishment of a contingency plan in case the risk takes place.

The mitigation strategy is to avoid the risks pre hand so that a project does not face the risk expected or can successfully avoid it or can minimize its effect to the maximum as much as possible but at times the mitigation strategies are so costly that they are costing an organization more than what the after affects of the risks would cost the organization, that is why cost estimation is done before this step.

Risk Contingency planning

The step of contingency planning includes developing strategies that can be undertaken if something or some risk unexpectedly comes up rather than the expected risk or which can be put to action if the original plan ...