RISK MANAGEMENT

Risk Management

Introduction1

Discussion2

The Advent of Strategic Risk Management2

Risk Management and the Board's Role2

Roles and Responsibilities3

Risk and the Strategic Planning Process4

Stakeholder Analysis5

The Components of the Risk Management Process5

Establishing Risk Content6

Understanding the strategy of the organization6

Identifying Risks6

Gathering data on the strategic risks6

Analysing Risks7

Creating a strategic risk profile7

Validating the profile7

Implementing Action Plans8

Communicating the risk profile with an action plan8

Implementing the action plan8

Integrating Risk Management and Performance Measurement8

The Guiding Principles9

Conclusion9

References11

Risk Management

Introduction

OZ Education Centre started operating in 1985 with a team of twelve employees and ensured that the staff is able to provide best education in a comprehensive learning environment. The organization operated on the aims of providing a better future and life to the children as well the nation and helps them become creative and successful individuals (Ruprecht & Funston, 2007). It strives towards the development of each child by nurturing them, educating them and stimulating growth in them. By keeping with these values, OZ Education provides a nurturing environment that promotes every child's development in a way that brings joy and equips them for life (Ruprecht & Funston, 2007). Risk management is processes that helps the organization in identifying risks and critically deal with them. The organization maybe faced with various kinds of risks at different times. The success of the organization depends on how successfully it is able to carry out risk management and assessment process in the strategic business environment. The organization when has identified the associated risks, assesses them, evaluates them, develops plans to deal with them and monitors the effectiveness of the tools applied in risk management. Similarly, education learning centre is applying the tools of risk management to deal with various aspects in a better way (Ruprecht & Funston, 2007). The following paper discusses risk assessment from a strategic point of view for OZ Education Learning Centre and explains each aspect in detail for the system to work effectively and efficiently. It also identifies the components of the risk management system and how the Board allocates responsibilities to the Members, management and the employees for handling the risks in a strategic context.

Discussion

The Advent of Strategic Risk Management

Enterprise Risk Management revolves around risks that an organization maybe faced with. Some risks are harmful or some affect the health of the organization in meeting its objectives. Other risks can be disastrous that impair the organization's ability to maintain its survival. Here, this must be noticed that strategic risks are those risks that affect the ability of the organization in executing its plans and procedures (Mark, Bruce & Bonnie, 2011, pp. 2). The organization as a whole has to consider all the associated risks of doing the business. The risk management phenomenon is vital to shareholder value handling and the viability of the business. Thus, strategic risk management is the process of identification, assessment and management risk in the organization (Ruprecht & Funston, 2007).

OZ Education Learning Centre is incorporating risk management and assessment into its framework that shall help it in having a risk framework to deal with risks ...