Business Analysis

impact of the identified risks to the organization based on key business drivers (loss of life, loss of

This paper is intended as a risk management primer for senior managers. It discusses the

Weigh up the risk: a risk is the likelihood that a hazard will cause harm

One may need to be careful when ranking risk or displaying certain information related to risk. Qualitative and quantitative risk approaches are necessary and the timing and exact situation or risk need management level consideration. Combining a variety of these approaches with subject matter expertise can benefit DHS in determining a way forward (Rozell, 2015). It is beneficial in understanding risk associated with critical infrastructure. This can help in determining additional measures, and this can influence risk management

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.

A risk assessment is a way to identify, evaluate, quantify, and prioritize risks (Gibson, 2011).

It prioritizes risks and results in recommendations for controls that might offset or mitigate the determined risk.

Risk were identified in the risk brainstorming workshop, then ranked, and prioritized. Each risk was assessed and given a qualitative and quantitative measurements to determine where they rank in priority, with one being the highest risk and seven being the lowest risk (see appendix B).

It will grade risks based on its seriousness and likelihood of happening in the business.

The impact of the risks on global business it is dramatic in our days, changing the entire look of the industries and financial services. Some risks could be anticipated and identified but some could not. Companies now are using more and more key steps and principles to better manage the risks by;

CLASIFY THE RISKS: The vulnerabilities will be prioritized by ranking from most serious to least serious. The ranking dictates what is to be fix first. The risks will be categories as: Critical, Moderate and Low with the corresponding rate of remediation.

Prioritise the risks to ensure the ones carrying the most severe consequences are dealt with first

In order for risk to be managed, it first must be calculated. “Risk assessment involves the integration of threat, vulnerability, and consequence information.” (Moeteff, 2005, p.2). To use the formula R=f(C,V,T), we must first look at what each variable represents. The R represents the result we are looking for which is the risk. This gives the ability to assign a priority

Niccolo Machiavelli, the author of The Prince, said “Never was anything great achieved without danger.” This could be rephrased to “Nothing great is achieved without taking on risk”. The definition of risk is as an “act or failure to act in a way that brings the possibility of an unpleasant or unwelcome event”. And even though risk has a negative connotation, all risk is not bad. Intelligent businesses understand they must take on calculated risks to be competitive in the marketplace. However, taking on risk without regulating it is not a smart business decision. Deciding when or when not to accept risk is the basis of risk management. Generally speaking “risk management focuses on likely risks” (IT Governance Policies and Procedures). Types of business risks include political, environmental, planning, market (demand, customer satisfaction, etc.), economic, natural (fire, earthquake, flood, etc.), technical, criminal, financial risks, IT risk, safety/policy/legal and security risks, regulatory risks, risks to reputation, HR risks, and operational risks.

Over the years, the concept of risk management has proven to be an integral part of a business