Risk Analysis: Identifying and Managing Risks in Organizations

This document provides an overview of risk analysis in organizations. It covers the process of identifying risks, developing a risk management plan, and communicating the plan to the organization. The document also discusses different types of risks, such as banking risk, travel risk, and compliance risk. It is recommended for students studying risk management or business administration.

Assessment 2:
Risk analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
The process you used to identify risks ........................................................................................1
TASK-2............................................................................................................................................2
Develop a risk management plan.................................................................................................2
TASK-3............................................................................................................................................3
Communicate the plan to your organisation by submitting your report and the risk
management plan to your manager (your assessor) for internal distribution...............................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Risk analysis refers to the identifying and then analysing the potential issues which which
have the impact impacts on the business. It may have the positive as well as negative impacts so
the decision is to be taken in the proper manner. It helps organisation to perform better and help
in completing the task so that the results can be achieved easily. Risk analysis may be in the form
of quantitative or qualitative approach (Aven, 2015). The topic covered under this reports are the
likelihood, consequence, priorities and options. The risk management plan is also studied so that
the decision is to be taken in an proper manner.
MAIN BODY
TASK 1
The process you used to identify risks
There are various ways by which the risk can be identified in proper manner. It helps in
taking the future decision so that in future there is an probability of having the profit.
Likelihood: It is the possibility which shows that the current event will occur in the
future. It is always expressed in terms of the qualitative approach. Events may sometime occurs
and have the chances of the possibility. Business risk may have the inadequate profit so that the
decision is to be taken in proper manner. It always affect the business as there is an possibility of
getting the profit and loss. It is not feasible for the organisation as there are chances of getting
the loss also.
Consequence: The consequence of the risk has many manifolds. As it can lead to the
financial gains and the positive outcomes so that the decision is to be taken in the proper manner.
It helps in taking the risk and taking the actions according to the decision taken. It is very
effective as there is no risk and the higher chances are of getting the positive outcomes. It is
feasible for the organisation as it has the positive impact so the decision is to be taken in the
proper manner. Banking risk have various consequences like the loss of money , safety which is
to be done in proper manner.
Priorities: It is the most critical rank which helps in identifying the risk so that the
decision is to be taken in proper manner. It is based on the overall priorities of the risk on the
project so the decision is to be taken in the proper manner. The risk is decide according the
priorities which effect the business in proper manner so that the decision is taken properly. It is
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feasible for the organisation and the decisions are to be taken in the properly (Dziadosz and
Rejment, 2015).
Options: These are the risk handling options in the organisation so that the decisions are
to be taken. The risk is sub divided in the avoidance, control or the assumptions so that in future
it will get affected in proper manner. The option relating to the banking risk or travellers risk
should be based on the assumptions that they do not have more impact in future.
TASK-2
Develop a risk management plan
Risk Assess Risk
(L, M, H, E)
Controls Monitoring Timelines Responsible
Banking risk High Banking risk
can be
controlled by
not carrying
the more cash
and should use
the nearer
bank. Use
digital banking
transfer
system for the
secure
payment.
Identify the
roles of the
management
so that the
proper
decision is to
be taken. The
risk related top
the assets are
to be observed
in an proper
manner.
Pre-settlement Financial
controller
should be
there so that
the decision
related to the
banks are to be
taken in
proper manner
(Watts and
Hall, 2016).
Managers
travel risk
Medium The individual
should work
with the single
travel agent
company so
that the
decision is to
The policies of
the company
is to be check
and monitored
in the proper
manner so the
decisions are
3 months Legal issues
should be
checked and
the countries
we are
travelling
should have
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be taken in
proper manner
and should
read the policy
in the proper
manner.
to be taken
properly and
will not affect
the individual.
no risk. Proper
safety is to be
ensured.
By-Law
Compliance
risk
High The risk can
be avoided
when er start
assessing the
risk in the
proper manner
and should
follow the
proper ethics
in an
organisation
so the decision
is to be taken
in proper
manner (Kou,
2019).
The risk which
has the legal
regulatory are
to be
monitored first
which have
the high
impact in the
organisation.
6 months The board of
directors
should observe
the risk in
proper manner
and also have
the impact on
the effective
management
of an
organisation
so the
decisions
related to
organisation
are to be taken
in proper
manner.
TASK-3
Communicate the plan to your organisation by submitting your report and the risk management
plan to your manager (your assessor) for internal distribution.
The plan has been prepared so that the risk is to be analysed so that the decision is to be
taken in the proper manner and the bank risk has the high risk the decision is to be taken in the
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proper manner as the bank has the money and the decisions are to be taken properly. The
banking risk is high as there are the chances of the theft in the organisation sop the decisions are
to be taken in the proper manner(Modarres, Kaminskiy and Krivtsov, 2016). Managers travel
risk should be observed in the proper manner as there are the policies which are to be monitored
on the regular basis. By-Law Compliance risk is high risk and have the period of the 6 months
and have the high impact in the organisation.
CONCLUSION
Risk assessment refers to the factors which affect the organisation so that the decisions
are to be taken in the proper manner and will not affect the business. Evaluating the risk as it
may have the positive as well as the negative impact so the decisions are to be taken in the
proper manner. Various risk are studied like the bank risk, travellers risk and the By-Compliance
risk so that the decisions are to be taken in the proper manner and helps in evaluating the results
properly in organisation.
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REFERENCES
Books & Journals
Aven, T., 2015. Risk analysis. John Wiley & Sons.
Dziadosz, A. and Rejment, M., 2015. Risk analysis in construction project-chosen methods.
Procedia Engineering. 122. pp.258-265.
Kou, G. and et. al., 2019. Machine learning methods for systemic risk analysis in financial
sectors. Technological and Economic Development of Economy. 25(5). pp.716-742.
Modarres, M., Kaminskiy, M. P. and Krivtsov, V., 2016. Reliability engineering and risk
analysis: a practical guide. CRC press.
Watts, J. M. and Hall, J. R., 2016. Introduction to fire risk analysis. In SFPE handbook of fire
protection engineering (pp. 2817-2826). Springer, New York, NY.
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