Risk Management Strategies and Mitigation in Business Operations

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Risk management Report

Contents
Abstract-.....................................................................................................................................3
Introduction-...............................................................................................................................4
Risk management.......................................................................................................................5
Risk management Tools-........................................................................................................6
Preparing risk management-..................................................................................................6
Establishing the operational risk management strategy-........................................................7
Risk Parameter-..........................................................................................................................7
Analyze risk-..........................................................................................................................8
Evaluate risks-........................................................................................................................8
Developing the Risk Disposition Strategy-................................................................................9
Addressing the risk-...............................................................................................................9
Risk Response Plan-...............................................................................................................9
Implementing the Risk Strategies-.......................................................................................10
Measure and the control process-.........................................................................................10
Conclusion-..............................................................................................................................11
Reference-................................................................................................................................12

Abstract-
The organization uses the risk management programs which develop and operate the ware
reliant systems and prevent it from failure by occurring a trigger. Sometime in the instance,
the root prevents the failure of the employed program by tracing the risk management
practices. For improving the system failure from the existing risk various research has been
undertaking on the risk management. The risk management method is applied by using the
various tools, techniques around the life cycle which examined the risk such as software
development risk, operational risk, mission risk, system acquisition risk, and the information
security risk. Therefore, for evaluating the risk management programs in the organization the
risk management framework is been approached. (Alberts and Dorofee, 2010)

Introduction-
The organization performs, several risk management strategies to protect the systems from
the risk which occurs in the form of the system failure and used the alarming rate for
identifying in the risk of the system. These failures occur several reasons such as:-
 The significant gaps of the risk management practice are being found in the
organization which is the main reason behind the failure.
 The uneven application also causes various risk in the organization.
 The complexity of the risk increases the system failure in the organization.
For improving the existing risk management practices the researchers undergo a project
which defines constitute of the best practices of the risk management. The technology
provides the result of the research by the following specifications:
 Evaluation of the risk program must need to do according to the framework.
 Documentation of the risk should be done according to the risk management
framework.
For controlling the operational risk of the organization need to identify the risk, analyze the
risk and determine its effect on the organization. For addressing the risk balance strategies are
required for the values of the assets and the services of the organization. (Alberts and
Dorofee, 2010)

Risk management
The risk management generally contains the development of the risk management plan,
recognizing the workings of the risk management process and the activities guideline,
effective practices and the executing tools of each component.
Figure 1: Risk management process
The above image contains all the steps of the risk management which include:-
1. Identification of the risk
2. Impact of the risk
3. Prioritization of the risk
4. Mitigation Planning of the risk
The first step is to recognize the risk in the risk management process. The main objective of
the identification of the risks includes the external system of the project in the organization.
The second step is the risk impact which identifies the risk events found in the organization.
This includes the effect of the cost or the technical performance of the organization.
The third step is the risk prioritization which set the overall identified risk events of the
organization according to the impact of the assessment and their occurrence in the least to
high-rank order. The main purpose of the prioritizing risk is to allocating the critical
resources of the organization.

The fourth step is the risk mitigation strategy which is preparing for reducing the effects of
the threats in the organization. The risk mitigation generally focuses on the predictability of
the disasters which cannot be avoided.
Risk management Tools-
There are various risk management tools which are used for analyzing and managing the risk
of the organization. These tools include tools such as (Modarres, 2016)
 Risk Analysis of the strategic- this tool is used for identifying the risk and analyze it
according to its priority so that the strategic goals and objective should be achieved in
the organization.
 Threat Analysis- this tool focuses on minimizing the threat impact on the organization
by identifying and analyzing the risk.
 Risk analysis investment- this tool focus on removing the risk from the organization
by investing in the risk according to its priority.
 Risk management program- it focuses on eliminating the risk and minimizing it
according to its impact on the organization.
 Cost of the risk analysis- this tool focus on the new economic and technological risk
which affect the system cost. Therefore, by applying this tool the organization
measure and manage the cost of the risk on the system.
Preparing risk management-
The operational risk management is developed in the organization by preparing the strategy
which identifies, respond and analyze the risk of the organization. In this process, the risk
management address plan is achieved on the enterprise-wide which carry and continue the
operational risk. It also identifies the sources and the operational risk which establishes the
strategy that works with the organization approach and the objective is managed by the risk
fundamental resilience management process. (Das and Teng, 2001)
Determining the risk sources-
The risk source is identified which support the organization to govern the category of the
operational risk which can affect the organization. There are two types of source of risk
internal and the external on the organization. The operational risk is categorized in the
following products which perform the advanced analysis and the response from the activities
is similar to the types of the risk such as:
 Source list of the operational risk
 Taxonomy of the operational risk
 Categories list of the risk
1. Determining the operational risk sources-
The risk sources id the important area of the risk which affects the organization services and
the associated asset which will meet the organization mission. The risk source represents the
common area where the risk can be originated. The inside and outside sources include-
 It designed and executes the services and the business processes of the organization.

 It also identifies the unintentional actions of the people such as any modification of
the information done.
 Identify the insider threat and fraud.
 It also identifies the failure of the system which can perform the intended risk that can
pose the complexity and unpredictability on the interconnected systems.
2. Determining the Operational risk categories-
The risk category is provided by the means of collecting and organizing the risk area for
analyzing and response. The active risk also classifies the align of the several sources of the
operational risk so that it can identify the processes, action of the users, system and the
technology of the externals events of the organization. It also identifies the availability of the
risk from the people and provides the confidentiality, integrity and the availability to the
information of the organization.
3. Creating the operational risk taxonomy-
The organization specifies the risk taxonomy which collects and catalogues the common risk
of the organization which should be subject and managed. The risk taxonomy is meant for
communicating with the risk and develop the organizational line of business which response
the action of operational resources and the amenities which get affected by them.
Establishing the operational risk management strategy-
The plan for the handling operational risk a relative strategic objective has been establishing
and maintained because the pervasion nature of the risk needs proper consideration of the
strategy for the risk and to reduce the effect of the risk. The operational risk management
activity includes various strategies such as:
 Identify the sources of operational risk.
 Set the scope for operational risk management activities.
 Develop the methods for identifying, analyzing, responding and monitoring the
operational risk.
 Implement the parameter for the measure of the action taken on the operational risk.
 Define the risk measure to monitor the status of the risk in the organization.
 The time interval for the monitoring and reassessment of the risk.
 The staff who is involved in risk management activities.
The operational risk management strategy is developed for facilitating the accumulation of
the risk in the organization program. The strategy includes the documentation and the
relevant stakeholders which is responsible for the internal and external operation of the risk
management activities.
Risk Parameter-
The risk parameter is used for providing a consistent measurement of across the organization.
It also establishes the risk tolerance and thresholds which redirects the organization risk level
by providing the stages of the acceptance of risk in the risk category of the organization. The
risk parameter establishes the organizational viewpoint of risk management (Moll,
Bachmann, Joeris, Goldhahn and Blauth, 2016)
The risk parameter includes the following working products-

1. Thresholds of the operational risk
2. Operational appetite
3. Requirements of risk management.
Defining the risk thresholds for each risk category-
The risk thresholds are the management device which is used for determining the risk control
which has exceeded the acceptability of the organizational limits. Also, it must set the
operational risk for the organization so that it can establish and measure and manage the risk
of the organization.
Establishing the risk management parameter-
For establishing the risk management parameter a specific risk parameter is required which
can measure the risk criteria of the organization. These risk management criteria are used for
evaluating, prioritizing and categorizing the operational risk of the organization. It works on
the impact area of the organization for measuring the risk and also set the potential parameter
for it.
Analyze risk-
The risk analysis is accomplished in the organization by determining the significance of the
recognized operational risk and used it to assist the organization with risk disposition and
response activities. The risk analysis helps the organizational domicile for identifying the
risks in the background of an organization’s risk drivers which measure facilitates response
planning.
Evaluate risks-
The risk is evaluated against the risk criteria and the tolerance of the possible impact of the
risk. For determining the operational risk and the consequences of the risk which is assessed
by using the different organizational risk management techniques. As it is described that not
all of the risk is same in the organization their capacity is a major concern in the business
which effects the minor resource such as cash reserves, market position, and the business. It
also updates the risk statement which makes great impact valuation on the organization.
There are followings risk evaluation steps:-
 Evaluating the identifies risk using risk parameter and the risk management criteria-
in this every risk is estimated and allotted in accordance with the clear risk
parameters. The organization weight the value of the risk which can be adjusted by
the priority of the impact and establish the risk measurement criteria. Also, it
determines and ensures the impact of the utmost important area of the organization
which is strongly influenced and prioritized with the risk response.
 Assigning the value to each of the risk statement- the value of the risk statement is
categorized as high, medium and low and on the basis of the risk score, it combines
the impact area and weight the consequences value of the organization. The risk
statement is the factor used for deciding what to do with the risk found in the
organization.

Developing the Risk Disposition Strategy-
The significant part of the risk management is used to determining the policy for identifying
the risk and implement the activities which carry the scheme. The strategy progress begins
with assigning the risk disposition if the risk that states the organization’s intention of the risk
address. The risk disposition widely includes- (Hopkin, 2018)
 Risk avoidance- it alters the operation which avoids the risk while providing the
essential services.
 Risk acceptance- it acknowledges the risk but continuously does not take any action
on the risk.
 Risk monitoring- it performs the research and complying action on the operational
risk until it addresses the risk is apparent from the organization.
 Risk transfer- it assigns the risk to the keen and able object.
 Risk mitigation- it takes active steps for minimizing the risk of the organization.
Addressing the risk-
The risk response is involved in the development of the strategies that are used for seeking
and minimizing the risk to the acceptance level. The address risk action includes-
 It will reduce the vulnerability and the threat which results in risk.
 Minimize the vulnerability from which the risk is been arise.
 It develops the continuity plan which keeps the asset and the services of production
from the effect released by the risk.
 It also develops the recovery and restoration plan for the address of the consequences
of the released risk.
The organization addresses the risk and combines these actions which depends on the assets
affect and the services of the organization, also the cost of the protection sustain the strategic
values of the assets. It also response the resilience requirement for improving the controls and
the strategy of the organization. The risk responses require the organizational performance
with two distinct actions such as- developed risk plan and implement the monitor plan for the
organization.
The improvement of the protection strategy is done by selecting and implementing the
controls which are performed by each of the assets of the process areas. The development
system implements the internal control which is performed by the Control management
process area.
Risk Response Plan-
The risk responses plan is developed when the risk is exceeded in the organization and which
can be determined as the unacceptable act of the address risk of the organization. The address
risk required the implementation of the response strategic which can include the wide range
of the activities of the organization. The risk response also required the adjustment of the
current strategy which will protect the assets and the services. The organization also designs
the implementation of the new controls and the developed new services of the continuity
plan. This risk can be migrated by the address of the residual risk. This risk analyzed is
determined by the risk response plan which includes- (Burtonshaw-Gunn, 2017)

1. Development of the risk response plan of the risk required to migrate and control. The
common elements which are responses by the risk response plan are considered as-
 How can the threat and vulnerability be reduced?
 The planned action will prevent the limit of the exploit threat.
 Controls the implemented and update the reduce administration and the technical
controls.
 Reduce the impact of the continuity plan which has released from the risk.
 Developed the specified plan for the risk.
 Address the plan for the residual of the risk.
2. Validation of the risk response plan which will compare the strategic protection from
the assets and the services- it validates against the strategies and the services of the
continuity plan to protect the assets and the services from the risk in the organization.
The gaps reflect the improvement of the sustainability activities of risk management.
3. Identifying the group of responsible risk to ensure the authority to act the proper level
of the skills and monitored the planned activity in the organization.
4. Address residual risk- the risk is especially accepted and transferred so that it can
consider the risk response plan for requiring the reconsideration of the risk.
Implementing the Risk Strategies-
The effective management of the risk is required for monitoring the status of the risk in the
organization. The operational environment changed the risk identity and address which revisit
the strategy which has been developed. The risk management strategy is defined as the
interval status of the risk strategies which align the organization risk identification activities
and performed the independent risk identification method in the organization. The risk
strategy is implemented for monitoring the risk such as- (Hopkin, 2018)
 Monitoring the risk status- it dispositions the risk and mitigate the risk and
redeveloped the response plan according to the circumstance.
 It provides the method of the tracked risk closure.
 Implement the risk plan for providing the technique to monitor the effective plan for
the organization.
 Collect the performance measures the process of risk management.
 Allow the resources execution of the risk management activities.
Measure and the control process-
The measure of the risk management process denotes to the collection of the distributed data
of the organization so that it can be controlled by the risk control process. It also measures the
actual risk of the process and reviews the result of the planned risk process. And elaborate the
internal as well as the external sources which have been identified in the form of the
operational risk.

Conclusion-
The risk management is the constant process but it is not an event. It is performed properly by
using the powerful tool which will enable the organization to operate the optimal risk level to
maximize the value creation. The risk management program is important as it selects the tool
and supports the risk management process steps. The risk management plan is the
responsibility which is developed for removing the risk from the organization. This report
presents the risks anticipated and proposes the mitigation measure of the organization. The
risk level also determines the critical and identifies the risk which is found in the company.
The various risk response plan has also been implemented on the organization so that the
effect of the risk cannot harm the company resources and the information.

Reference-
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