3. RESULTS AND DISCUSSION
Following the review cited above, it is apparent that risk management cycle (hazard identification, risk assessment for prioritizing the need for response, decision for actions according to available resources, measures implementation, monitoring, feedback and identification of new hazards) dominates every business activity and consequently comprises the process that drives the organisational management and operations. From a wider viewpoint, Risk Management comprises the inevitable and inextricable process that drives any human action lying from personal choices, to the family, team, social, workplace etc. levels and extending to the highest levels of decision making (e.g. States, Alliances etc.); Every …show more content…
The fundamental quality PDCA cycle (Plan-Do-Check-Act) concerned, it may comprise the driver for an effective and operational organisational structure since quality principles as discussed above may apply to every organisational activity. More particularly:
• In order to ensure that the “Act” stage that follows the assessment stage “Check” will comply with the organisational policies and will not provoke negative side effects due to lack of the big picture, an additional “Plan” stage between “Check” and “Act” is considered essential. Therefore, the complete cycle on the scope of more effective organisational management would be: “Plan-Do-Check-Plan-Act”.
• After the organisations’ initial development and the beginning of production and operations, the first two stages of the aforementioned modified cycle are actually omitted since additional planning is required only to improve the system during its monitoring, and the “Act” and the “Do” steps are mutually absorbed in a new stage that could be named as “Operate”; thus, the cycle may take the form: “Operate-Check-Plan”.
• Moreover, it may be claimed that the notion of cycle is not realistic since any stage of the cycle is present in parallel with the others, and it does not apply sequentially; the
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2.3 Implement operation plan within own area of responsibility; The operational plan that I have submitted is from my area of responsibility, this has been devised by using the organisational strategy and working out my areas on responsibility. This allows me to have an end goal and then I need to plan how to achieve it. Once this is done I can work out a step by step plan of what needs to be done and by whom. This is all added to the plan along with any other obligations that will arise like staff supervision and appraisals and monitoring. I can then arrange the plan so that it is ordered by
The sixth step in the planning process is very essential, monitor and control. In this step will reveal whether or not a plan is successful. Just like some of the earlier planning, this can become repetitive and redundant, but very necessary. Inside this stage, companies will see a plan for
By using a cyclical methodology in assessment of the action steps defined within this plan, management can become engaged in planning for the future successes of the company.
Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,
The planning process begins with a situation analysis of the external and internal forces affecting the organization. This examination helps identify and diagnose issues and problems and may bring to the surface alternative goals and plans for the firm. Next, the advantages and disadvantages of these goals and plans should be evaluated against one another. Once a set of goals and a plan have been selected, implementation involves communicating the plan to employees, allocating resources, and making certain that other systems such as rewards and budgets are supporting the plan. Finally, planning requires instituting control systems to monitor progress toward the goals.
A major part of the planning stage is the proposed solution for the implementation. After the evidence is analyzed critically, a plan is developed to implement with the help of a change model. Before implementing change, it is important to follow the steps, which includes: analyze change, know the elements and the way to apply change (Houser & Oman, 2011).
The First aspect to consider the Objectives and Goal-Setting that help to clarify the vision of the business. Important facts to consider in this step is to define the short and long objectives, set the actions that help to accomplish the objectives and last distribute the task among employees. In addition is necessary for this step to write the mission statement and communicate the goal with shareholders and staff. The second aspects were Analysis which consists in gathering the necessary information and data that will allow to accomplish the vision and help the business to grow. In addition, at this stage is important to identify the strength and weakness of the company. The third aspects were Strategy Formulation which is the process where information is a review, and business resources are identified. The Fourth aspect is Strategy Implementation, this stage is critical to the business because it is the action stage so if the strategy implemented did not work new structure installed at the beginning of this stage will overcome the issue. Employees within the organization also must be aware of their responsibilities, duties, and goals. Evaluation and Control are the last aspects to take into account and consist of review the internal and external issues and set corrective issues. A good evaluation begins by defining the parameters to be measured, monitoring internal and external take corrective actions that will move the company forward. Indeed, “the success of monitoring depends on the initial quantitative objective used in the plan’s development” (Berkowitz 2017, page
Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.
The fourth phase is strategic issues in which participants create a methodical list of the most important issues that the community is dealing with. The issues are identified by looking at the results from the assessments and figuring out how those issues have an effect on the attainment of the shared vision. In phase five which is goals/strategies, the participants take the strategic issues recognized in the prior phase and make goal statements related to those issues. Then broad strategies are established in order to address the issues and achieve the goals related to the community's vision. This phase causes the development and implementation of an interrelated set of strategy assertions. The action cycle phase involves three activities: planning, implementation, and evaluation. This is the phase where results are produced as the action
Risk Management issues are often handled at the facility where the problem(s) exist. One of the duties of Risk Manager’s is to communication and collaboration between departments within an organization in question. In addition, to sinking risks, and cutting costs in order to promote process efficiency .By analyzing incident reports is one way to correct current problems, and future problem areas. Risk managers are also responsible for certain criteria that must be met in order for full participation in certain government and state reimbursement programs ("World Health Organization," “n.d.”). Risk Management is a structured approach to managing improbability, related to a risk, through a structure of human interaction.
Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).
Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)
Taking a step back to Juran’s steps once the concept of awareness and definition of goals have been accepted by the sponsors there must be a determination of how to implement the quality management plan. Once the plan is accepted there must be steps taken to facilitate this plan to staff who will be responsible for the execution of the tasks and activities that will uphold the plan.
One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is
The purpose of this report is to provide insight of risk management and control system in the reality from the cases study of