Risk Management



Risk Management

Introduction

Risk is the product of the livelihood of occurrence and possibilities. Risk is occurred due to several activities at workplaces and there are certain types of risks (Hickman et al, 2013). Each risk is different from other risk depending upon the situation and work. The final results of these risks are loss of assets, hazards and other negative outcomes which are not required at all. When risks are not controlled at first step then, it will create hazards or incidents. It is essential to stop or manage the risk at the beginning of the process in order to avoid any future mishap. Several organizations are implementing techniques to manage risks and, there are different ways to control risks. Risk management is also like opportunity management because; it is giving opportunities to get some positive results while avoiding risks.

Discussion

We will discuss the risk management techniques discussed by Dr. Kallman and other authors in the article “The Unseen Predator”. Dr. Kallman has identified several risk management techniques and tried to discuss with the audience. His approaches are helping several organizations to manage the work without involving the risk. It is also essential to compare the techniques of risk management prescribed by Dr. Kallman with other authors in order to understand and manage the risk more precisely. When we talk about the project risk management then it is linked with the important concerns and costs. There are certain strategies which allow managers to reduce risks, analyze the risk and identification of risk. Risk management approaches adopted by Dr. Kallman are not like the old approaches of risk management. These approaches are ensuring that there are technical alternatives to insurance of those risks. Insurance is able to cover the risk but it is expensive of all present alternatives and, it should be used as the last option.

Management of Risk

Now, how risk can be managed with the common definition from variation that what is expected over time, any adverse event, uncertainty, and chance of profit or loss. Members of board may not discuss these things in their discussions and, most of them do not know that these things should be involved in the terms of managing risks. They cannot set financial and operational expectations unless they believe that there is a basic agreement on this critical issue. According to Dr. Kallman, managers should ask their employees that what they know about risk and, how to manage the risk. They can see numerous responses and, take a firm decision considering any of the best response. There should be the proper organizational culture for risk management in organization and, each employee knows how to cover the risk at the first step. CEOs and managers should check their internal auditors that whether are doing their jobs with full responsibility or not. Risk management should be treated as an isolated function and, it is essential for that organization who do not view risk management from correct point of view (Kallman et al, ...