Analysis and Development of Risk Management Framework

This report presents an analysis of a risk management framework designed to address internal conflicts within a business organization. The assignment begins by identifying a problem where a company's initiatives to improve its customer image faced failure due to internal employee conflicts and poor communication. The report then provides an in-depth analysis of the problem, followed by an exploration of neo-humanism and radical structuralism as methodologies to understand and resolve the conflict. A comprehensive literature review on organizational conflict and conflict management is included. The core of the report is the development and proposal of a risk management framework, including steps such as establishing common terminology, defining roles, identifying risks, and planning for mitigation. The discussion section evaluates the advantages and limitations of the framework, and how it caters to neo-humanistic and radical structuralist perspectives. The report concludes with a summary of the framework's effectiveness in improving organizational understanding and reducing functional damages, ultimately aiming to enhance the company's customer-facing image.

Running Head: RISK MANAGEMENT FRAMEWORK
RISK MANAGEMENT FRAMEWORK
Name of the Student
Name of the University
Author Note:

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Table of Contents
1. Introduction.........................................................................................................................2
1.1 Problem statement.......................................................................................................2
1.2 Problem analysis..........................................................................................................3
1.3 Problem identified.......................................................................................................3
2. Methodology.......................................................................................................................3
2.1. Neo-Humanism...............................................................................................................3
2.2. Radical Structuralism......................................................................................................4
3. Literature review.................................................................................................................4
4. Solution development and proposal....................................................................................6
4.1. Risk management framework.........................................................................................6
5. Discussion..............................................................................................................................6
5.1. Advantages......................................................................................................................8
5.2 Limitation.........................................................................................................................8
5.3. Catering to perspectives..................................................................................................9
5.3.1. Neo-humanism.........................................................................................................9
5.3.2. Radical Structuralism...............................................................................................9
6. Conclusion............................................................................................................................10
7. References............................................................................................................................11

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1. Introduction
Management of risk is an important factor for business to implement in the business
organisation. It is a driver for the stakeholders becoming aware about the factors of risk
present in the business organisation (Odetunde 2013). Conflicts may function as the driver of
strategic verdicts of the institution. It also determines the financial crisis and employee
retention in any business organisation. The entire business industry needs to understand the
presence of risk will directly affect the desired goal of generating company remuneration. To
avoid the occurrence of any organisational conflicts strategies should be taken in advance.
The ultimate result of implementing successful risk management strategies leads to
assurance, compliance and improved decision making for the betterment of the organisation.
These ultimate results will cater to various benefits for the business organisation through
enhancement of the proficiency of the operations, effective tactics, and efficiency in
implementing the strategies for the institution (Johansen and Cadmus 2016). This paper will
introduce the importance of risk management framework for any business organisation. It
will identify the problem present in this particular business organisation for attaining failure
in this campaign. It will provide further analysis of the problems. A critical analysis will be
provided with proper theoretical concepts related to the problems. A risk management
framework will be created to identify probable solution that can bring success for the
organisation. The critical evaluation portion will discuss about the advantages and
disadvantages of the suggested risk management program.
1.1 Problem statement
The mentioned organisation was taking initiatives to improve its customer based image.
Their initiatives faced failure due to the presence of inner conflicts among their employees.

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1.2 Problem analysis
The activities initiated by this business organisation include setting a budget to be donated to
some selected charities. These initiatives include partial involvement of the social media
platforms. For a positive sign, these plans were approved by the executive team that refers to
the initial stage of these planning was progressing towards success. However, some of the
employees display some personal uncertainties for this campaign. These employees were not
enough confident to inform about their personal thinking to the executive team and hence
these initiatives directed toward failure.
1.3 Problem identified
Hence, the identified problem of this organisation is obviously lies in the existing risk
management facilities of the organisation. Along with that, the employees are not
comfortable in communicating with the supervisors or other hierarchical authorities of the
organisation.
2. Methodology
2.1. Neo-Humanism
This is a philosophical concept that builds a ground for the promotion of individual and
collective development. The core philosophy of this approach is universalism. This concept
claims to promote humanism at the position of universalism. It establishes the enhancement
of physical, psychological, and spiritual welfare of an individual. The level of spiritual
development contributes to the communal activities as a part of spiritual performance. The
principle of this approach influences only on the psychological and spiritual dominions of a
human being (Dollarhide and Oliver 2014). The final concept of neo-humanism assures the
achievement of the spiritual goals. According to this theory, when an individual spirit is

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getting connected with the cosmic body, he/she achieves the consummation of the existence.
The key terms associated with this concept are devotion, dogma, exploitation, exploiters,
generic concepts of humanism, pseudo humanism, concept of internationalism, and concepts
of religion. It covers all the domains of physical, psychological and spiritual development of
an individual.
2.2. Radical Structuralism
This concept speaks about the communal macro elements including the social standard and
race. Humanism stresses on the subjective realism and oppression, on the other hand,
structuralism stresses on the objective realism of the community and its structure. The
concept of radical structuralism comprises with some paradigms. This theory does not limit
itself in the ecological concepts. It provides a firm ground for communal hierarchy,
inequalities in properties, and the relative differences between the elites and the major
population. Marx and Engle are the name associated with the theory of radical structuralism
(Leggett 2013). They demonstrated this concept with the illustration of conflicts among the
proletariat and bourgeois. The aim of this concept is to provide equity in terms of health. For
an additional stress, it can be said that, equity of health can be considered as an emancipatory
objective. Follower of this theory takes the radical change as the habitual nature of communal
structure. The core concept of this theory states that contemporary community is featured by
fundamental discrepancies that create radical alteration via economic and political crisis.
3. Literature review
Concept of conflict
Organisational conflicts refer to the occurrence of any issue in the work environment.
Workplace exhibits different human beings with different perspective to look after things.

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Conflicts or dispute is a common issue found in workplace environment. It needs to identify
and sort out initially to avoid any serious issue that leads to negative impact on the business
growth. According to the studies, organisational conflict comprises of various stages. The
initial stage of conflict is known as latent conflict where the performers only identify the
conflict. As example, competitive attitude for scarce properties is one of the type of latent
dispute of an organisation. Second stage of institutional conflict is named as perceived
identified with the nature of miscommunication among the employees. Third stage of conflict
is felt dispute where same type of issue is sensed in both of the participants. Fourth stage is
Manifestation where open aggressive nature is visible. Fifth stage includes aftermath of the
conflict. Organisation conflicts can be categorised in individual conflict and conflict with the
hierarchy. Conflict with the hierarchy refers to the situation where a person of group of
person exhibit dissatisfaction with other group including the authority.
Conflict management
Organisational conflict can take a serious image if not solved within the initial stage. Proper
conflict management strategies help the employees to learn about their selves and their
colleagues. It is very important to identify the organisational conflict at the initial stage
ensure the productivity of the business organisation. There are various methods to resolve any
organisational conflict. The methods to resolve any inner conflict include compelling,
problem solving, compromising, and avoiding. Forcing or compelling is the most effective
method to resolve any organisational conflict. This concept functions with the power of the
authority imposed on the inferior of the business organisations. Second method focuses of
identifying the issue and taking initiatives according to the importance of the conflict.
Compromising is a method where one of the performer of the conflict needs to compromise
the niche in terms to resolve the problem. The final concept refers to simply avoiding the
relatively less serious conflicts and proceeding further with the normal work.

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4. Solution development and proposal
4.1. Risk management framework
The identified risk in this particular business organisation belongs to the some employees
of the organisation and the members from the executive team. The framework of enterprise
risk management (ERM) (Rubino and Vitolla 2014) can be followed to resolve this conflict to
achieve success in the near future. This framework includes the following steps
 Establishing common terminology
 Establishing a steering board
 Spreading the responsibilities
 Developing the methodology for the chosen framework
 Stating the key terms of the resolving method
 Identifying the risk
 Prioritising the risk
 Planning for mitigation
 Reporting the risk
5. Discussion
 Establishing common terminology – It refers to educating the employees about some
general terms related to risk management. It may be include the common definition of
conflict and its impacts on the organisational growth.
 Establishing a steering board – It refers to selecting any hierarchical committee to
supervise the implementation of the risk management strategies. This board will help
to delineate the responsibilities in between the framework.

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 Spreading the responsibilities – This board will distribute the responsibilities of the
framework in various group. The responsibilities are distributed among the board of
directors, senior management team, other business units, team members of the audit
group, and human resource department.
 Developing the methodology for the chosen framework – This step refers to providing
appropriate definitions of risk and the probable solutions included in this ERM
structure.
 Stating the key terms of the resolving method – According to the seriousness of the
conflict the resolving initiatives should be clearly stated in written form. This written
document will include the aims and objectives of the suggested framework along with
proper allocations of roles and responsibilities.
 Identifying the risk – Identification of the risk can be done with performing various
business activities including individual meeting, or general board meeting. It will also
define the importance of the suggested framework and calculation of the level of the
risk.
 Prioritising the risk – Using this framework and initiated activities both the employees
and the executive team will be able to understand about the level of the risk. They will
be able to understand the risk factors associated with the organisational conflict.
 Planning for mitigation – Planning should be done in considering the strength and
weakness of the business organisation. This step will help to avoid the situation of
draining out of resources before taking initiatives according to the resolving
framework.
 Reporting the risk – This is the final stage of the proposed framework. It allows the
institution to attain a clear image of the general acquaintance to risk. It will help to

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improve the organisational understanding in regards to conflicts and control. It will
help to reduce the functional damages of the company.
5.1. Advantages
There are various advantages of ERM framework as a method to resolve conflict among
any business organisation. This framework help the business organisation to define the term
risk for the self and the existing employees. Along with this, it clearly state the level of risk
and its control of the entire business growth. This framework will help to reduce the damages
related to the operation. This structural initiative enhances the deployment of the resources. It
strengthens the alignment of conflict appetite and the organisational objectives. It clearly
states the perspective of the hierarchical authority of the business organisation. The
management of this framework distributes the responsibilities among various groups that
infuse the concept of collaborative work. Along with this, it improves the regulatory agency,
improves the core control and develops the awareness of culture of risk management.
5.2 Limitation
This framework has different limitations in implementing the strategies among the
business organisation. Firstly, due to the individual differences it faces challenges in defining
the terminologies of risks. For the same reason the it faces difficulties in providing
knowledge about the seriousness of the conflict. This framework often faces challenge
regarding gathering the reliable data along with insufficient use of modern technology. One
of the other challenges of this framework is the area of generating the conflict appetite
document. The concept of prioritising the conflict often raises further conflicts among the
employees.

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5.3. Catering to perspectives
5.3.1. Neo-humanism
The implementation of this framework with proper steps will serve to the concept of neo-
humanism. According to this concept, it connects the link between the aspects of physical,
psychological, and spiritual development of an individual being. In this organisation, this
framework will help the employees to understand their roles and responsibilities towards the
betterment of the organisation. Hence, the organisation will be able to resolve the inner
conflicts of the organisation that will help to achieve the ultimate goal of the institution. The
ultimate goal of the organisation is to strengthen their image from the perspective of their
customers.
5.3.2. Radical Structuralism
Radical structuralism refers to an understanding of the organisational hierarchy of the
organisation. This framework will help to establish a clear conversation between the
executive team and the employees of the organisation to resolve the conflicts among them.
This will also provide a space where the employees will be able to state their comments
directly to the executive team members and higher authority. A communication between the
authority and the employees always results positively in the concept of customer retention
and generating annual remuneration for the business agency. This framework also mentions
about documenting the strategies made for both the responsible performers of the business
organisation along with the board of directors. This written document leads to avoiding any
type of confusion in spreading the responsibilities among the employees and the authority.

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6. Conclusion
In conclusion, it can be said that the core reason of attaining failure for the initiated
campaign is the existing inner conflict of the business organisation. The two performers of
this conflict are the employees and the executive team. The central reason of this conflict is
absence of any clear communication between the two performers. To demonstrate the conflict
particularly the concept of neo-humanism and radical structuralism comes in mind. Neo-
humanism refers to linking between the physical, psychological, and spiritual connection of
an individual human being. It states the importance of the concept of humanism in resolving
the organisational conflicts. Structural concepts helps to understand the concept of
responsibilities related to the achievements of conflict management facilities. As a resolve
strategy the introduction of ERM framework is mentioned. As a concept, this framework also
have some advantages and limitations that performs as an obstacle at the way of its success.
Additionally, this framework also indirectly linked with the two concepts of neo-humanism,
and radical structuralism. These concepts are the two ways that can resolve any
organisational conflict within time.