Risk Management Process



INTRODUCTION3

DISCUSSION AND ANALYSIS4

Communication and Consultation5

Establishing the Context5

Risk/Hazard Identification6

Risk/Hazard Analysis7

Risk/Hazard Evaluation8

Risk Treatment8

Monitoring and Review10

CONCLUSION11

References13

Appendix14

Risk Management Process

INTRODUCTION

This assignment is based on Risk Management Process. Risk management is an integral part of the organization which is implemented in many small, medium and large organizations. Everyone must be involved in the process of risk management. Complete risk management process has to be followed to reduce the potential or real risk. Regular monitoring and reviewing are required to make assurance of the implementation of risk management program. Risk management can be defined as the process of decision-making in an environment of uncertainty and the consequences that exist if this action occurs. The overall process of risk management is applicable to a program, a policy, an activity, a stage of a process, etc. Also this can apply at all levels of an organization; however, the approach taken and methods used to make decisions vary from one to another, from one program to another, or from one activity to another (Power, 2009).

Risk management is the first step for the company to aware of the vulnerabilities that have their assets and threats that might materialize these vulnerabilities. It is the duty of the company to know the risks they faced to establish countermeasures and clarify responsibilities. The risk management plan is the document that defines the approach, management elements and the resources to be allocated to the management of risk.

Integrated risk management is a systematic and continuous process that aims at understanding, communication and risk management processes in an organization in wide perspective. It consists of making strategic decisions to minimize the negative consequences and make the most of the opportunities that contribute to the objectives of an organization (Cameron, 2005).

DISCUSSION AND ANALYSIS

The purpose of the risk management plan is to set up an approach to monitor, evaluate and manage the risk throughout the project. A risk is an uncertain event which can have negative or positive effect on the objective of the project. The risk management process will identify possible risk sources or problems; evaluating them individually and possible impacts on performance; evaluating different options to mitigate high level of risks, and developing action plans to control risks individually. Risk management must be taken into account throughout the life cycle of all projects.

Organizations involved in integrated risk management gather relevant information for decision making and thus improve the achievement of their goals. It is therefore important to directly involve the risk management objectives at all levels of the organization. If risk management does not seem to facilitate the decision making process, it could be seen as an administrative requirement that is impossible to ignore. The approach to risk management defines the context of risk management mechanisms by providing the framework and resources (Chapman, 2003).

Communication and Consultation

The risk communication includes reporting and examinations of risks. Risks are analysed and sorted by priority in the evaluation process. Risk analysis normally requires a minimum assessment of the likelihood of the risk occurring and the impact on ...