Essay on Essential Evaluation of Risks in Organizations

Effective planning & execution of risk assessment procedure in all financial & operating sectors to identify potential risk to organization.

After considering my above feelings and thoughts I realised that by being aware of the time I spent on the risk assessment, I was able to keep it as necessary and as concise as I had hoped for. Previously I have ran out of time completing the full assessment, meaning that the ending of the assessment is typically missed off. According to Westbrook et al (2007) five or ten minutes is required at the end of treatment to conclude and set up a homework task. Although at the time I was feeling anxious and nervous; attempting to keep track of the time allowed me to achieve the assessment in the time I had allocated myself.

However in the future, company has indicated that as per their strategy they plan to open more home standalone format stores which will depress revenue densities, hence it will affect the asset turnover. To mitigate the effect of this, company plans to increase its directory sales and sale to international customers through online channel.

Whilst on placement with the Aberdeenshire Council Children and Families Team I adhered to the lone working policy to ensure my safety when out of the office working with clients. To minimise risks, in line with this policy I have my mobile phone with me at all times and ensure I write my day to day diary on the office board with names, times and addresses of where I will be going, and notify staff of my where-a-bouts (Aberdeenshire Council 2014).

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.

This paper discusses three risk analysis methodologies, specifically, MSRAM, OCTAVE, and CRAMM and provides a detailed description of each and how they incorporate risk into a platform for decision makers to use in their endeavors to prevent, protect, mitigate, respond, and in recovery measures as part of the risk assessment and management processes.

There are two main types of risk management assessments. They are qualitative and quantitative methodologies. With the qualitative methodology, a relative values are used to determine the probability and impact of a risk (Gibson, 2011). This type of information can be collected quickly. A quantitative risk assessment is used to estimate how much money would be lost should a vulnerability be exploited (Vanderberg, n.d.). With the quantitative methodology, actual dollar values are used. It can take a time to gather this type of data. Once the data is gathered, however, a math formula is used to determine the priority of risks and in turn show the results of controls (Gibson, 2011).

Risks are probabilities that could render a business to have lower than anticipated profits. This could be due to various and numerous factors. The identification, acknowledgement and acceptance of these risks are fundamental to every business, Coffeeville in particular. This report will outline CoffeeVille’s exisiting Risk Management Policy. It will also determine its effectiveness with regards to risk identification, management and control.

There are four major risks which observed by the team during the analysis. The topmost risk for the company would be complaints of customer, this would occur when the team fails to provide the proposed service to customers. The lowermost risk for the company is emergence of a competitor in a close area. Both the risks should be handled strictly and need regular monitoring measures.

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

This report also uses some forecasting technique to evaluate the future position of the company. The discount rate (WACC), which incorporates the risk-free rate and risk factor for individual stock, is the key driver of share prices. The sensitivity analysis shows that the theoretical share price is very sensitive to change in WACC. Thus, slightly changes in WACC will lead to a significant impact on the current stock price. The factors that can take the place of WACC such as market return, the company’s beta, risk free rate, and tax rate should be used to observe the fluctuation of stock price which is WACC forecast. This may indicate that ABC value is currently overvalued since the valuation of the share is slightly lower than the actual share price. In addition, although the value of ABC might increase in the future, share price is changed by the movement of WACC. Therefore, it should not hold the shares in the company.

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)

CMR, originally Mike’s Cabinets, is an architectural millwork business that competes in two different market segments: commercial and residential. In order to effectively compete in both markets, the nature of CMR’s business varies slightly between them.

The term risk assessment refers to an objective evaluation of risks to which end the assumptions and uncertainties are clearly put into consideration as well as presented. On the other hand in regards to risk management it has in most cases courted difficulties in the measurement of both the quantities in which risk assessment is concerned (Muzzi, Armando, and Augusto Panà, 2000, pp. 99-103). This is because the potentiality of an anticipated loss and the probability of it occurring have proved pretty difficult to quantify. This leaves a huge margin of error in the quantification of these two concepts.

Risk analysis involves the study and interpretation of risk management philosophies and their implementation. Detailed analysis in circumstances is