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Risk Assessment & Management Essay

   

Added on  2020-07-23

10 Pages3196 Words31 Views
RISK MANAGEMENT

TABLE OF CONTENTSINTRODUCTION.......................................................................................................................................................................................3Descriptive analysis.................................................................................................................................................................................3Forecasting methods................................................................................................................................................................................5Suitable conditions for implementing qualitative techniques. Implementation of qualitative techniques into problems for future use.8CONCLUSION............................................................................................................................................................................................8REFERENCES............................................................................................................................................................................................9.....................................................................................................................................................................................................................................9

INTRODUCTIONThe practices through which organisations are able to determine and effectively manage financial risks are known as riskmanagement. The risk assessment is based on various factors such as inflation, regression, volatility, etc. The present report is mainlyfocused on the risk assessment and management process considered by Hilton hotel. It is one of the leading hospitality industry ofAustralia. They are providing services at international platform (Bremberger and et.al., 2017 ). They takes various actions to improvetheir products and services and maintain brand value. The company is facing some risk related to the performance of their staff. Thefirm offers financial and non-financial benefits to their employees, but their work is still not producing effective outcomes. Thepresent report consists of various quantitative and qualitative technique. It helps in determining factors that demotivate employees. Itplays significant role in taking actions for motivating staff.Evaluation of statementIt is true statement that knowledge can be divided in to uncertainty and perfect knowledge. Means that when any businessperson operate its business there may be two sort of situation. In first situation there may be limited knowledge about businessproblem and due to this reason lots of uncertainty may come in existence. Whereas, in second sort of situation one have perfectknowledge about the business conditions and is in position from where it can make accurate predictions about outcome of situation.So, basically there is a broad spectrum where there are two sort of conditions like one is uncertain and other one is certain. Riskheavily lie in case of uncertain spectrum in comparison to certain conditions. This is because in case of condition of perfect knowledgeone have reliable facts and figures and broad knowledge of situation. Thus, by evaluating figures one is able to make reliabledecisions. On other hand, in case of uncertain condition everything is vague and it is like leaving arrow in darkness. One just bymaking assumptions and estimations make decisions which is very wrong. Hence, there is high probability that decisions taken by onein uncertain condition may be wrong.In order to solve work based problems one must use analytic tools instead of making assumptions about situation and makingdecisions. Under this managers must gather data in respect to work based problems and by using techniques like cluster analysis,decision tree and regression analysis etc. By using these tools pattern can be explored and lots of hidden facts from data sets can beexplored. By using results of cluster analysis lots of decisions can be made by managers. In same way by using regression methodrelationship between dependent and independent variables can be identified and decisions can be made by managers. It can be saidthat use of analytic tools help managers a lot to solve business problems.Risk management There are basically two principles in respect to risk management that are followed by business firms namely consequencebased security management and risk reliant safety management. Former one concept state that while managing risk it must beidentified that if specific risk will not be managed then in that case what will be consequences. This help one in identifying thoseactivities where risk is comparatively higher than other activities. Apart from this risk residual concept state that probability and natureof risk must be taken in to account while managing risk in the business. Consequences of eventFirm is giving financial and non-financial incentives to the employees but desired results are not obtained. In case same trendremain in existence financial burden on the firm will increase as employees do not feel motivated even financial incentives are givento them. Thud , desired return are not obtained on invested amount. 8 steps for effective risk management are as follows.Identification of stakeholders of businessIdentification of reasons due to which risk comes in existenceFinding out measures that can be adopted to control risksPerforming analysis of risksEvaluation of riskPreparing risk management planExecution of aforementioned planMonitoring and evaluation of plan

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