A Comparative Analysis of the Risk Management Techniques of Dr Kallman With Those of Other Experts

Risk Management Analysis |

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

Definition: A Risk is an unwanted situation which might arise in an organization which might lead to negative impact on the desired result. Risk management plans involves the analyzing, managing and evaluating the projects risk and threats. It involves layout of the entire project i.e from the beginning during and after results of the project.

The management has to plan for the risk. The steps above call for the planning of risk. Some risks are urgent, others must be immediate, and others essential. All these risks require special attention. Therefore, the management must plan on how to al with the risks depending on

The purpose of this term paper is to examine the terms ‘risk’, ‘risk assessment’ and ‘risk management’ and discuss how uncertainty affects these. The first part of the paper will be discussing risk in further detail especially when risk can be disadvantageous to an individual or a corporate body, and the need to eliminate or minimize the disadvantageous risk, especially if human life is at stake. The next part will start discussing the process of how industrial companies in particular go about starting the process of mitigation and reduction of risk to as low as reasonably practicable (ALARP), which is assessing risk through the use of variable tools. After the risk is assessed, then the process of actually putting things in place to manage the risks and their probable effects is discussed. The paper will round off with a discussion on uncertainty and how uncertainty affects the processes of risk assessment and risk management.

Similarly, risk management is widely referred in the literature regarding economics, engineering and safety. Channing & Ridley (2008) claim that the element of risk is present in every business activity, and the foreseen, elimination and reduction of risk implications indicate a successful manager. In his work about risk management in the life insurance market, Koller (2011) sets risks as the dominating factor that drives the business governance and roles, the capital and risk appetite, the limits, the measurements and the exposure; all the aforementioned components define the organizational processes. As with QMS, several authors in their studies about safety (e.g. Stranks 2006a, 2006b and 2008, Ferret & Hughes 2007 and 2011, and Waring 1996) have introduced risk management models to be incorporated in the wide organizational structure.

Risk management: Includes identification, analysis assessment, control, and avoidance, reduce or elimination of unexpected risks. Any organization can use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy or it could combination of these strategies in proper management of future work.

In recent changes a few things have become important for companies. The first is connecting risk to business performance. Companies need to establish processes and mechanisms which link risk to business performance. Risk management under the present scenario also includes measures like sophisticated measurement, modeling and analytics for anticipating risks as well as integrating risk management capabilities with the organizational structure and across business units. Similarly, developing relationships with regulatory agencies as well as supervising regulation and compliance has also become important. (Butcher, 2011) Apart from all, detailed training on risk management and infusing risk awareness across the organization is also important. In short, integrating the risk function to include it in strategic planning has become crucial to gaining sustainable advantage.

Managing risk is a complex issue in the world of business today, and covers issues from budgets, to legal issues as well as security for a company, and these are topics that will be discussed in this study. Often the success of a company depends on the risk management skills of the team and leaders. How well risk management in business is handled will decide whether the mission of the company will be carried out and it is primary to security. This study will look at issues that are affected by risk management and draw conclusion on how they should be used in order for a company to reach optimal success.

This essay will explore three areas of risk management which have been criticised in recent years due to their earlier neglect. Following the description of the problem and the current status of risk management research in each given area, a brief conclusion is provided. The conclusions in this essay aim to address the issues in risk management more generally by building on the status of risk management studies.

In business, the word of investment can be defined as the outflow of money for the purchase of valuable item with an expectation of positive future return or the purchase of equipment or inventory by owner in order to improve future business. (Kahraman, 2011) Moreover, the part of decision-making preforms a crucial role in business investment that depends upon the investor’s profit expectation, the availability to finance the investment and the potential cost of asset. (Virlics, 2013) However, risk and uncertainty are the basic terms to the decision-making framework. Risk can be defined as the probability or threat of outcomes or loss that is caused by internal or external vulnerabilities where the probabilities of the possible negative

Fundamentally, risk management pertains about distinguishing, assessing and taking financial control of distinctive business risks. An assortment of diverse tools is utilized as a part of risk management

The complexity of modern organization requires a way to pre-plan and assess situations that may be detrimental to the organization. Risk management is one way to identify issues that may occur to disrupt business; to assess in detail the quality and quantity of those risks, and to prioritize how managing those risks can contribute to the organization's overall success. The purpose of risk management is to be proactive in improving places or processes within an organization that may have risks that can be mitigated or controlled and to do something to minimize those risks and the financial exposure to them. In almost any organization, there are potentials for risk within a construction project there may be supply or labor issues; within a small business stock, weather or employee issues; or in other organizations uncertainty in markets, legal issues, credit risks, accidents, natural causes or disasters, deliberate competitive attacks, and a host of other unpredictable cases. So rife are risks for organizations, that standard and have been developed by national and international bodies, insurance agencies, and regulatory agencies to help organizations identify and minimize risk (International Organization for Standardization, 2009).

In order to study the whole concept of risk management, the aim of the research was identified along with the main objective of the

Operational Risk Management is worth of doctoral-level study because it is the means through which risks that would negatively affect business operations are identified and informed judgment to mitigate the identified risks are made. Hence it decreases or eliminates operational loss in businesses, decreases exposure to future risks by ensuring that management has good continuity plans and detects illegal actions. It is therefore essential at a doctorial level to have well informed knowledge about operational risk management to better suit in the work environment.