This specific process involves documentation

Running head: RISK MANAGEMENT
Risk Management
Name of the Student
Name of the University
Author’s Note:

1
RISK MANAGEMENT
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................5
Question 3........................................................................................................................................8
Question 4......................................................................................................................................12
References......................................................................................................................................15

2
RISK MANAGEMENT
Question 1
1.1 Explanation of the Risk Identification and Discussion on Three Types of Risks
Risk identification can be defined as the most significant process for determining
different risks, which can potentially avoid the organization, investments or programs from
achievement of the objectives (McNeil, Frey and Embrechts 2015). This specific process
involves documentation as well as communication of the concern. The major objective of this
risk identification procedure refers to the constant identification of different events, which when
take place, might comprise of negative impacts on the overall capability of a project for the core
purpose of obtaining performance goals (Glendon, Clarke and McKenna 2016). These risks
mainly come from the respective project or from external sources. Several kinds of risk
assessment are present, like program risk assessment, which are required for supporting the
investment decisions, proper analyses of different alternatives as well as assessment of the cost
uncertainty or operational cost. It provides with the major scope through which different threats
are being recognized as well as evaluated on top priority for better understanding of the threats
and vulnerabilities (Ho et al. 2015).
The first step of risk identification is to recognize various program objectives and goals
for fostering a common understanding within the team about understanding success of the
program (Aven 2016). Several sources of risks are present and as a result, the respective project
team must review the respective scope of the program, cost estimation, scheduling, technical
maturity, key performance parameter, challenges for performances, stakeholders’ expectation
and current planning and many more. There are three distinct types of risks present that could be
extremely vulnerable for a business or organization and hence it is needed to eradicate these risks
successfully for better execution of the processes and operations. These risks include business
risk, non business risk and financial risk (Olson and Wu 2015). The description of these risks is
provided below:
i) Business Risk: The first as well as the foremost type of risk is business risk. This
particular type of risk is taken by the respective business enterprises themselves for
maximization of shareholder profits and values (Chance and Brooks 2015). The most significant
and important example of this business risk is that an organization undertake the high cost risks

3
RISK MANAGEMENT
within marketing for the core purpose of launching any new product and gain maximum sales
and profit.
ii) Non Business Risk: The second important and significant type of risk is non business
risk. These distinct types of risks are not under the control of the organizations. The risks, which
arise out of the economic and political imbalances could be easily termed as the non business
risks and these could often negatively affect the organizational growth and development to a high
level.
iii) Financial Risk: The third distinct and noteworthy type of risk is financial risk. It is
the kind of risk, which includes financial loss to the firms (Hubbard 2020). The financial risks
usually takes place for the losses or instability within the financial market that are being caused
by the movement within stock price, interest rate and currency.
1.2 Discussion of the Risk Description Framework by Hopkins in Telstra Corporation
Limited
Telstra Corporation Limited is one of the most significant and important
telecommunication organization within Australia that is responsible for building and operating
telecommunication networks and markets voice, mobile, pay TVs, Internet accessibility as well
as other product or service. The organization was founded within the year of 1975 and the
headquarters is in Melbourne Australia (Telstra.com.au. 2020). More than 26000 employees are
working in the company and they are adopting several new strategies for eradicating any type of
risk or threat. The risk description framework by Hopkins for the organization of Telstra
Corporation Limited is required for being sure that all types of risks and threats are successfully
eradicated without any type of complexity or issue.
Moreover, the probable risks are highlights and these are being managed with the
respective risk description framework. The main components of this particular framework
include the communications as well as reporting structure or the architecture, the overall strategy
for risk management, which is being set by the organizational strategy and finally the set of
procedures and guidelines or protocols that are being developed (Hopkin 2018). The subsequent
combination of different protocols and guidelines is required to be considered over top priority
and make sure that the existing risks and threats within Telstra are successfully eradicated. As a