Assessment on Manage Risk | Study

Running Head: Manage Risk
Manage Risk

Manage Risk
Table of Contents
ASSESSMENT 1: WRITTEN QUESTIONS.................................................................................3
ASSESSMENT 2:............................................................................................................................8
Reference.......................................................................................................................................11
2

Manage Risk
ASSESSMENT 1:
1. List two examples of each of the following risks.
a. Operational Risk- A Company operates with so many things like the employees,
investor, customers, financial assets, connection etc. Putting those aspects into any risky
situation and expecting the positive outcome may not be the clever move. Those aspects
can be in the risk for both internal and external reasons.
b. Strategic Risk- Taking wrong decisions, implementing weak business strategies and
making poor plans can definitely make the company lose the competition in the market.
Not responding to the changes in business and putting money for those projects without
even analysis also represents the risks.
c. External Risk- This type of risk often comes from outside the corporate structure. It can
be controlled by the company neither forecast by anyone, these types of risks are
unpredictable.
2. Outline the purpose and key elements of current risk management standards.
Any business or workplace risk management is a way to deal with the possible business risk
which can occur in the coming future. Usually business risks are determined by analyzing the
business operation, systems, process and strategies. Risk management helps to prioritizes,
identifies the possible risks which may occur from some unexpected incidents and minimize the
penalties in the business (Glendon, et al 2016). It also helps to keep record the tracks about the
past mistakes and gives the scope to more informed risk-based decision-making capability.
Identifying the possible risks- The first is to study about the external and internal facts about
the business and checking the possible risk which can possibly come up during the business
plans and strategies implementation. This is a vital task because any risk can damage the
business objectives.
Analyzing the risk- Understanding the impact of those risks, because as already discussed that
risks has both the positive and negative impact so before making any decision in favor of the risk
its needs to check it out that is even worth it or not. This step will include the calibration, if
possible and helping in find out the different outcomes.
3

Manage Risk
Dealing with the risk- After identifying and analyzing the risks it's time to make some strategies
to protect the objectives for those risks. Making a strong plan and implementing those in order to
overcome those risks is important.
Monitoring the risks and the possible opportunities- In this industry taking risks happens
when it is cleared that if it works then profit will be huge and if it's not worked out then the loss
will not be going to matter (Sadgrove, 2016). In simple words if there are chances of any
opportunities then taking the risk might be the best decision. Also keeping the track about the
performance making by those risks.
3. What are the two components of risk management that must occur continually
throughout the process?
The two components are Hazards and Financial risks.
4. a. List three sources of information that an organization might use in order to gather
information on potential risks.
Three sources of information for potential risks are Root cause analysis, SWOT analysis,
Diagramming techniques.
b. Outline the key elements and purpose of organizational policies and procedure and
processes for risk management.
● Setting the compliance with the law and regulations.
● Providing the appropriate controls and rules to the board of staff or volunteers which set
out how things should be done and what is actually expected from the people.
● Policies do not need to be long and complicated, it's just the guidelines for the sake of
companies’ success and achievement because these policies often create a reputation for
which people are taking the company seriously.
● It is also important to make all those policies legalized so if someone doesn't respect
those policies then the company can take legal action against them.
● Not only making those policies but also implementing them and monitoring them is
important.
5. Explain and describe two items that are typical components for each aspect of PESTLE
analysis.
● Political- Basically the influence of government in all business could be classified here.
This will include policy, labor law, tax policy, foreign trade, etc. All these factors should
be considered carefully in order to reduce the risks
● Economical- This factor is considered as the economic growth of the business,
unemployment rates, exchange rates, interest rates, etc. These things are also important to
avoiding the potential business risks.
4