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(PDF) Risk Management Decision Making

   

Added on  2021-01-22

15 Pages3230 Words130 Views
1EVALUATING RISKS AND DECISIONSASSIGNMENT 2

2Table of contentIntroduction................................................................................................................................3Critically review and evaluation of how organizations, teams or other strategic groupingsmay implement risk management approaches...........................................................................4the integration of theoretical models and application of practice to strategic and/or complexsituations....................................................................................................................................6Conclusion................................................................................................................................11References................................................................................................................................12

3Introduction The main purpose of this report is to make people understand the importance of adopting riskmanagement approaches in order to reduce or mitigate business risk. The study highlights theRisk management framework under the standard of ISO 31000, which includes variousstrategies, processes, and principles to manage the business risk. It also discusses the variousprinciples of risk management and implementation of Enterprise risk management model as astrategy, it also highlights the benefits of implementing and adopting the enterprise riskmanagement model within the company to mitigate the probability of risk. Lastly, the reportdiscusses the role and impact of corporate governance, information technology, and resiliencein the management of risk within the organization.

4Critically review and evaluation of how organizations, teams or other strategicgroupings may implement risk management approachesPrinciples of risk management As per the author Aven (2019), risk assessment is a vital aspect of every organization's riskassessment. That is the mechanism by which companies handle the risks associated with theiroperations methodically. A successful risk management initiative should be commensuratewith an organization's level of risk, aligned with other business activities, broad in scope,incorporated in routine activities, and dynamic by responding to changing circumstances.Risk assessment focuses on the identification of significant threats and the implementation ofacceptable risk responses. The goal is to obtain an optimum economic benefit through all ofthe organization's operations. Benefit assessment increases understanding of the possible upsand downs of events impacting an enterprise. This raises the chances of achievement and alsodecreases the risk of disappointment and the difficulty involved with meeting theorganization's objectives. Review of ISO 31000ISO 31000 defines the risk control system elements. This architecture structure is given inFigure 2 with a condensed edition. It includes key steps in the implementation of the riskmanagement process and continuous support (Muthuveeran, 2019). The Board's 'mandate anddedication' is an essential feature of the ISO 31000 system, preceded by: Framework architecture● Apply risk control● System for tracking and analysis● strengthen the framework;

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