Comprehensive Analysis of Risk Management in the Modern Workplace

This report delves into the critical aspects of risk management within the workplace, emphasizing its significance in maintaining productivity and employee well-being. It begins by defining risk and exploring both internal and external factors that contribute to workplace hazards, such as conflicts, labor turnover, and changes in market dynamics. The report then examines the impact of these risks, including accidents due to inadequate safety measures and psychosocial threats like depression and anxiety. It highlights the importance of risk management as an essential component of organizational decision-making, enabling companies to proactively identify and eliminate hazards. The core principles of risk management are outlined, including aligning with organizational objectives, defining roles and authority, and ensuring stakeholder contributions. Furthermore, the report details the risk management process, comprising risk identification, analysis, evaluation, treatment, and continuous monitoring. Finally, it discusses various methods of risk management and underscores the advantages of a robust risk management strategy, such as creating a safe environment and efficient resource utilization. The report concludes by emphasizing the importance of risk management for economic growth and long-term stability in a competitive business landscape.

Risk Management

Risk Management on the
workplace
 What is Risk Management ?
Risk Management is a process of managing the internal and
external hazards which are hampering the productivity and
performance level of the company. This procedure assist the
company in the prevention of the risk (Management study
guide, 2019).
.
To understand the importance of risk management on the
workplace in the precise manner , it is very crucial to
understand the meaning of risk and their impacts and how
they can managed efficiently.

Risk: A Roadblock
Meaning
It is an alarming situation where the unforeseen events affects the
objectives of an organization to perform well against the
competitors. These factors influence the decisions on the internal
and external level.
 Internal Factors : Tension and conflicts between the managers
and the subordinates, Labor turnover due to lack of flexibility in
the working system of the company, and financial risk.
 External Factors: changes in foreign policies of the nation,
changes in the flow of competitive market.

Risk on the workplace
1. In the competitive environment of the business, risk
creates an unfavorable circumstance for the company
which impact its stability. Such conditions adversely
impacts the relations of the company with their
stakeholder.
2. Lack of professional environment, safety measures for
the employees and breach of morality provokes the
employees and other members to take actions against the
company.

Risk on the workplace
This kind of menace, destroys the positive relationship
between employ and employer To avoid such harmful
situations, organization practices risk management on
the workplace so that the company can perform and
achieve their goals while ensuring the interest of the
employee.

Impact of Risk on the
workplace Lack of proper laboratory for the chemicals : Due to the
lack of facilities for the chemical labors , the cases of
accident in an organization has been increased . One of the
major cause of such damage is an absence of proper
structure of laboratory and equipment for the workers.
Moreover, any negligence related to the safety of the
employees can bridge a gap between the employees and the
organizational body.
 Source (Haasan et al., 2017)

 Workplace Hazards:
They are the common business environment risk which can be
discovered in factories related the oil and mining.
Psychosocial Threats : According to the statistics provided
by the international labor Organization, there are more than
2.3 million employees die on the annual basis, due to the
mental issue like depression, anxiety and loneliness. One of
the major causes of theses threats are the insecurity related
to the work. Furthermore, more than 76% are struggling from
health related issues (Buehler et al., 2017)

Importance of Risk
Management Risk management is an essential part of an
organizational decision making process. Without the
risk management a company cannot plan its futuristic
goals. This process is being adopted by the companies
so that they can easily identify the hazards and
eliminate them on the right time (Careers in audit , 2013).

Principle of Risk
Management
A. Organizational Objectives : While addressing the risk
and the unexpected challenges, the company should
also focus on is future goals. Therefore, the
company must practice appropriate structure of
prevention of risk so that it can encounter them
effectively while achieving organizational goals.
B. Roles and Authority: While preparing the policies of
minimizing the risk, The company should ensure the
transparency in their delegation of responsibility
and duties to the employees so that can participate
and contribute their efforts in the management
process.
Other principles
 Ensuring the contribution of stakeholders
 Support Structure
 And Empower diversification

Procedure of practicing Risk
Management.
Risk Management process: It is a blue print of the actions
which is to taken by the management team to avoid the
impact of uncertain events on the business. This process
comprises of 5 prominent steps: (Duden, 2018):
 Identify the Risk: On the initial level of the
process, the company determine the nature
of the risk which is threatening the productivity
of the business.
 Analyze the hazard: On this stage the company,
evaluates the degree of risk and how much
they have already impacted it .

Risk Management Process
Evaluate the risk : The next step is to determine the
risk by applying the rank approach system. In this, the
managers must prioritize the risk which is highly
impacting the business environment and requires
immediate action
Treat the Risk : This level is known as elimination
round , where each risk is managed effectively and are
encountered by the members of the company.

Risk Management Process
Monitor and review the risk: The last step of the
process is to review the task and control the hazards.
While going through this process it can be realized that
there are some factors which cannot be removed form
the operations but can be avoided
Method of Risk Management(Pomsassoc,
2019):
Avoidance
Loss Prevention
Duplication