Importance of Risk Management

The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Identify the potential risks which affect the company and manage these risks within its risk appetite;

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

The reason the investigation was conducted was to gauge what was both good and bad about the new café opening, what needs to be changed in order to increase efficiency at work and any legislative laws involved.

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.

Business risk refers to the chance a business's cash flows are not enough to cover its operating expenses like cost of goods sold, rent and wages. Unlike financial risk, business risk is independent of the amount of debt a business owes (Guzman & Media, 2015). Financial risk refers to the chance a business's cash flows are not enough to pay creditors and fulfill other financial responsibilities (Guzman & Media, 2015). Financial risk is the additional business risk concentrated on common stockholders when financial leverage is used and depends on the amount of debt and preferred stock financing (Brigham & Ehrhardt, 2014).

From the beginning of mankind to our modern day society, individuals have a tendency to gape at individuals who put a lot on the line to achieve a desired goal. Whether it be a Marvel superhero to our local firemen, individuals who put their well-being on the line are placed in a high stature in the eyes of many. We gravitate to be just like these individuals and are ashamed of becoming viewed as a coward. This idea is prevalent in people of all ages, backgrounds, and gender and will continue to motivate us to attain glory by means of taking risks. However, it is important to know the fine line between taking risks and putting yourself in inevitable danger. One must be willing to accept the consequence of failure.

Risk managers are a vital lifeline in the healthcare organization. If this organization had an active risk manager in place, many of the events leading up to the infant losing its life could have been prevented. There are many steps that a risk manager must take once a risk is identified, this paper will walk through the steps that are required after the risk happened.

What events in medieval England brought about the creation and use of private night watches and patrols? Urbanization of the population created hardships for the normal everyday citizen in Medieval England. Crime and poverty was common throughout most communities. There were no public law enforcement agencies that could reduce or alleviate the causes of the problem. As time passed, the merchants themselves created the merchant police to guard shops and warehouses. The night watchmen primary purpose were to protect the citizens from thieves (Mebane, M., 2015, CJ233, Class Lectures). Secondly, they were employed to periodically patrol the areas by making security checks to ensure theft of property were kept to a minimum. During this same period of time in largely rural areas, the king and local land barons implemented programs to ensure that vegetation such as trees, shrubs and plant were cleared from the roads to protect the law-abiding citizen against robbers (Fischer R, 2013, P.4-6).

Each event will have risks, no matter what size or nature of the event. It is very important for the event organiser to identify and manage these risks. A proper Risk Management can effectively manage and reduce risks. For Children’s Day, there are several noticeable Health and Safety issues pertaining to the event because much more kids and minors will present on the event. In order to know what risks need to be managed and controlled, it is necessary to pre-plan Event Health & Safety – with a focus on hazard register. The following table (Table 4-1) illustrates the hazard register for this event (Event Risk Assessment Example / 04).

The definition of risk management which is given by the NCPI is the expectancy, identification, and assessment of a possible risk where a process is started to help take away any possible risks that can be associated with something or to help lower the amount of risk in which could be used to bring it down to a place which is deemed to be at more of a tolerable level. What this is doing is showing us that as we place certain control over risks any type of risk that is similar to these are then associated with each other. These risks are more easily controlled due to having them all in more of an organized fashion leading to our efforts to combat these risks to become more effective. This then helps these risks from becoming increased or even having other risks as a result. The whole notion of risk management is by acting on these risks before they become more serious we can prevent these actions from happening ultimately widening our control over them.

Risk management is an activity which integrates recognition of risk, risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. Some traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death). Financial risk management, on the other hand, focuses on risks that can be managed using traded financial instruments. Objective of risk management is

Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.

The project manager working with the project team and project client will ensure risks are actively identified, analyzed and managed throughout the life of the project. Risks will be identified as early as possible to minimize their impact. This can be done using several ways like