RISK MANAGEMENT IN FACILITIES MANAGEMENT

Risk Management in Facilities Management



Table of Contents

Introduction3

Corporate Governance4

Purpose of this policy4

Policy Objectives5

Policy Statement5

Scope of the policy5

What is Risk?6

The Approach8

Description of Risk Responsibilities10

Risk Review12

Risk Management Steps19

Risk Management Strategies20

Review and Evaluation of Risk Management Process22

Risk Management in Facilities Management

Introduction

Risk management holds great importance in the organizational context. Not only in business but other organizations such as universities and colleges, non profit organizations and associations study risk management to increase the efficiency of the operations. Similarly, the facilities management which is a kind of management, that is used for controlling or minimizing the involvement of risk. Risk management is the process to identify, assess and prioritized the risks, that how uncertainty affects on your objectives and goals and how a firm can monitor, minimize and control these probabilities of events. There are a number of risks that involve in a business, and every market or business has risk in order to tackle with them an effective manager is required. In this paper, Risk Management Policy is developed for a Facilities Management, with responsibilities at different levels and communication for the risk awareness.

Corporate Governance

In context of corporate governance, the International Facility Management Association describes facility management as a profession that comprises various disciplines to ensure the functionality of the venue environment by integrating people, place, and process. Management in general has several functions, such as planning, organizing, leading, implementing, evaluating, and controlling, and management style has a significant effect on operational efficiency (International Facility Management Association, 2012). In relation to corporate governance, facility management in particular entails working with several stakeholders; internal and external constituents who come from different fields and have a variety of interests in the respective facility. A facility manager therefore must have many highly specific skills, and certain managerial functions need to be fulfilled (Olson, 1997, 77).

Purpose of this policy

The purpose of risk management policy is to compose several primary functions, such as planning, organizing, implementing, and controlling. The management of a team sport facility depends on the type of the facility: whether it is for professional or nonprofessional sports; the investment volume and form of financing (public, private, public-private partnership [PPP]); the operating form (public or private); the usage (games or training); and the potential customers. For the management of a facility, it is vital to deal with the facility's mission, goals, and objectives since planning without knowing what the facility is aimed at is not possible and will lead to no successful result. Every facility has a different mission statement since the statement reflects the special intention of each facility.

Policy Objectives

The objectives of this policy are:

Contribute to the fulfillment of institutional mission and vision.

Contribute to the implementation of corporate strategic goals and objectives.

Contribute to the continued provision of services offered to citizens.

Policy Statement

Risk management should be done in a timely and continuous. Must be integrated and be inherent to the strategic planning and long term, as well as annual planning within the units and departments in each ...