RISK MANAGEMENT

Risk Management Process of Chesapeake

Introduction1

About Chesapeake1

Discussion1

COSO Enterprise1

Risk assessment2

Risk management Planning2

Steps of Risk Management Process3

Identification of risks3

Internal Environment4

Setting Objective4

Risks identified4

Assessing the RISKS4

Identifying the likelihood of the Risk5

Ways to respond to Risks5

Prioritizing the risk reduction measures6

Recommendations6

Analysis6

Gibbs Reflective Cycle7

Evaluation7

Analysis7

Conclusion7

Action Plan8

Pros and Cons of Risk Management8

Conclusion8

Reference9

Risk Management Process of Chesapeake

Introduction

Risk is present everywhere. It cannot be avoided but can be minimized. It is recommended for every organization, to manage the risk element. The risk management process helps in managing risks, playing a vital role in strategic management (Anonymous, 2012, p.4). It helps in identifying, assessing and categorizing the risk according to its priority (Culp, 2002, p.4). Overall it helps in understanding the factors that have a potential to affect the organization's risk. This will reduce the probability of failures thus increasing the rate of success of the organization. It is a continuous process that should be updated on a regular period of time and be implemented throughout the organization (Culp, 2002, p.4).

About Chesapeake

Chesapeake Energy Corporation is one of the leading producers of natural gas. In US, headquartered in Oklahoma City, the company fundamental operation includes tapping the undiscovered areas and developing separate oilfield and natural gas in US (www.chk.com).

Discussion

COSO Enterprise

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a joint venture of five private organizations which are dedicated in providing leadership by developing frameworks and guidance of risk management on an enterprise, fraud deterrence internal and internal control (Moller, 2007, p.4).

Risk assessment

Risk assessment is the fundamental tool that allows the employer to identify the measures of prevention and schedule of implementation, improvement and control in order to verify their effectiveness and efficiency. In this context, we can confirm the security measures already in place or make changes in order to improve in relation to the benchmark of technical and / or organizational introduced safety (Anonymous p.7).

The assessment of the risks to health and safety is of fundamental importance in the general protection measures constituting the basis of the whole system of prevention.

The employer must evaluate the choice of work equipment and chemical substances or preparations used, as well as the layout of the workplace, the risks to the safety and health of workers, including those for groups of workers exposed to significant risks. The risk assessment must cover all the risks.

Risk management Planning

It is a set of activities that are, on one hand encourage the project manager for the preparation and organization of the risk management process, on the other hand they lead to the creation of an organizational infrastructure whose task will be to take steps to isolate and reduce risk, eliminate the risk (if this is possible and reasonable), of preparing alternative courses of action and to determine the time and cash reserves to protect against hazards which may arise during the planning and execution of design. Materials input to the planning process of risk management are: project charter, the policy organization of risk management, records of staff roles ...