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Report on Risk Management Analysis

   

Added on  2020-05-08

14 Pages4132 Words43 Views
TOPIC: RISK MANAGEMENT ANALYSISNAMESTUDENT IDSUBJECTDATE1

Table of ContentsINTRODUCTION.....................................................................................................................................1RISK MANAGEMENT PROCESS.........................................................................................................2Risk Context Establishment..................................................................................................................2Risk Identification.................................................................................................................................2Risk Estimation......................................................................................................................................3Risk Assessment and Evaluation..........................................................................................................4Risk Control or Mitigation...................................................................................................................4Risk Monitoring and Review................................................................................................................5Risk Matrix..........................................................................................................................................6RISK MANAGEMENT PLAN.................................................................................................................6Risk Avoidance......................................................................................................................................7Sharing Risks.........................................................................................................................................7Risk Acceptance.....................................................................................................................................7Risk Control...........................................................................................................................................8Risk Reduction.......................................................................................................................................8Risk Transfer.........................................................................................................................................8CONCLUSION..........................................................................................................................................8REFERENCES..........................................................................................................................................92

INTRODUCTIONA risk can be defined as the potential or possibility of injury or loss occurrence. Business risks are the aspects of a business organization with the potential capability of causing loss of value for the business. Risk management is the identification, estimation, analysis, assessment and acceptance or mitigation of business risks or threats (Ziemba and Kolasa, 2015). Business risks can originate from different business operations like financial operations, human operations, technical operations, production operations, advertising and marketing operations and legal operations among others (Aven, 2016). Nowadays, risks management has become a very crucial activity for most business organizations in the current modern business world. In the case of digitalized companies, the IT security threats and data security risks have become a priority, whereby the businesses have always devised various technique of managing the identified risks, e.g. by effectively ide3ntifying and controlling data and IT appliance and device threats especially in the organizational data assets (De Bakker et al, 2011). However, a business enterprise can mitigate these risks by avoiding, accepting, controlling, risk assumption method, risk retention methods and risk transfer method (Berg, 2010). In other words, it is important that every business organizations builds and implements an effective and efficient risk management plan so that it be in a better position to perform and achieve its objectives (Brustbauer, 2016).Every business management team should ensure that there is timely and adequate risk identification plan which will be able to achieve the risk management goal and objective (Cole etal, 2017). This means that, there should be an effective risk management methodology as well, even in a business project. Additionally, a business enterprise should ensure that its plans, policies and procedures that relate to business risks are also effective and efficient especially when it comes to achieving the risk management standards. Risk management is a process that isactually undertaken by risk experts and professional (Chance and Brooks, 2015). These professionals basically analyze and assess different business departments and operations and roles including the insurance sector, business continuity status, human or employee welfare, health and safety, business’s corporate governance and business financial sector to name just but a few. This means that this process should be able to attain the main principles of risk management set up by the International Organization for Standardization which include aspects like: business value creation, inclusion in the decision making process, be systematically 3

structure process, be flexible and iterative especially to change, have the capability of being improved and advanced when need be among others.RISK MANAGEMENT PROCESSA risk management process should be preceded by a risk management plan which indicates various ways and methods of managing the risks (Cagno et al, 2008). Every risk management process should be certain of achieving and attaining the required standards and guidelines provided by the International Organization for Standardization (ISO). The project that I will be referring to is the development and advancement of information technology appliances in an Izteck Company. A risk management process involves the following steps:Risk Context EstablishmentThis step involves the assessment of the circumstances under which a risk may occur. The risk management team should evaluate and analyze the relationship between the organization and the environment in which the risk is likely to occur. For instance, the team can assess the status of a specific organizational department, e.g. information technology department and the overall environment surrounding the business. By doing this, the team will have established and identified the boundaries where the risk is bound to occur. Therefore, in this first step, the team should consider evaluating both the external and internal environment of the organization, i.e. employees, business goals and objectives, business stakeholders among other things (Didraga, 2013).Risk IdentificationThis step basically involves the identification of potential risks in specifics. This involves analyzing and evaluating their origin or causes. Generally, this step involves identifying the business aspects that have the capability of causing risks. Just as mentioned earlier, most risks that occur in most businesses originate from the sources like, human resource sector, financial sector, information and technology sector, operations sector, technical sector and political sector of a business to name just but a few. The risk management team of specialists should therefore focus on evaluating and analyzing every step and activity involves in most of these sectors to be able to identify the risks that can occur there (Ennouri, 2013). There are different approaches thatcan be used to identify these risks:4

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