RISK MANAGEMENT

Organisation Risk Management

Organisation Risk Management

Introduction

The threat that an event or action which negatively affect or influence the performance of an organisation and its capabilities to formulate the successful strategies. Risk management is the process by an organisation can recognize, estimate and control the major risk that is identifiable in quantitative and qualitative measures (Margaret, 2011, pp. 91-92). The organisations should follow the such areas and to link them in order of management of the risk such as (Corporate supremacy, Community centre, constitutions and procedures, principles of conduct, Service releasing actions, effective use of resources).

Risk management is about taking right decisions in order to facilitate the organisation from the major threats that can affect adversely, this can be achieved by considering transferring risk, controlling risk, and retaining the risk that has been identified. Insurance is not the solution or an aspect to avoid the risk management process because the major risks that are faced by the organisations are insurable. Thus, risk transferring, controlling and retaining is the part of risk management process (Woods, 2011, pp. 91-92).

Discussion

Elements of Risk Management

Risk management is regarded as the major fundamental for the better supremacy. It is the process where the information is forwarded to the awareness and the transport authorities to measure the level of risk it can face due to the lack of information that is being communicated. There are various categories of risk that cannot be measured with unitarily they need to be identified, assessed, formulate and evaluated on individual basis (Andersen & Schroder, 2010, pp. 21 ). The time to respond an uncertain situation is essential to be considered as it reduces the frequency of occurring impacts to the organisations, there should be the partial treatment, and reporting and coverage is required supported with the best preventive measures and the designing of proper warning systems. Evaluation should be done in an appropriate manner in order to facilitate the cost of functioning that works for the benefit of an organisation by managing risk, the running authorities should publicly re-examined the effectiveness of the organisational performance. Risk cannot be avoid it can only be treated or managed effectively. Therefore, organisation should focus on managing the risk rather than avoiding it as a threat (Andersen & Schroder, 2010, pp. 26-30).

Enterprise Risk Management

The authorities' objective in risk management should be only acknowledged when there is the persistence of running authority. The actions proposed by the authority has to undertake that they have properly evaluated and examined the actions will shortly be moderated in order to reduce the threat and increase the possibility of better performance. The risk should be analyzed and indentified with potential of an action specifically that must undertake the notion of prevention.

Risk Assessment Tools

The risk should be identified in a correct manner before an organisation starts formulating the strategy regarding the threat, assessing or identifying the incorrect record of risk or incomplete information regarding risk can be useless for the management process of the ...