Risk Analysis : Risk Management

Risk management is an important element in managing information systems. Applying risk management principals to business procedures is essential because it helps organizations design and maintain a safe systems environment to ensure the confidentiality, integrity, and availability of company data. Kudler Fine Foods has expressed an interest in developing an Enterprise Resource Planning (ERP) system. The primary objective is to improve business administration by integrating stores and business systems. Kudler Fine Foods has three stores in California and integrating business

Throughout the many different types of establishments that currently exist today, there are risk assessments methodologies which are used to estimate or determine risk. According to the Department of Homeland Security (DHS) Risk Lexicon (2010), risk assessment methodologies are defined as, “set of methods, principles, or rules used to identify and assess risk and to form priorities, develop courses of action, and inform decision-making” (p.25). Whether it is a risk assessment tailored for the government or private companies, the methods and principles are similar in a sense that they all aim at evaluating risk. Once risk can be determined, they can then decipher what types of strategies and decisions that should be used. Of the many risk assessments out there three distinct models who stood out were the Maritime Security Risk Analysis Model (MSRAM), The CARVER model, and lastly the Transportation Sector Security Risk Assessment (TSSRA). This paper will discuss the three risk assessment methodology’s origin, the intended audience, as well as some main elements and attributes. Afterward, the paper will conclude with my personal opinion to its strengths and weaknesses. But first, background on the selected risk analysis models in its designated order is needed starting with MSRAM.

Among the outgrowths in the United States is the Sarbanes-Oxley Act of 2002, and similar legislation has been enacted or is being considered in other countries. This law extends the long-standing requirement for public companies to maintain systems of internal control, requiring management to certify and the independent auditor to attest to the effectiveness of those systems. Internal Control – Integrated Framework, which continues to stand the test of time, serves as the broadly accepted standard for satisfying those reporting requirements. This Enterprise Risk Management – Integrated Framework expands on internal control, providing a more robust and extensive focus on the broader subject of enterprise risk management. While it is not intended to and does not replace the internal control framework, but rather incorporates the internal control framework within it, companies may decide to look to this enterprise risk management framework both to satisfy their internal control needs and to move toward a fuller risk management process. Among the most critical challenges for managements is determining how much risk the entity is prepared to and does accept as it strives to create value. This report will better enable them to meet this challenge.

Risk management is the process where individual and overall risks are understood and managed, thus optimizing success by minimizing the threats and to maximize opportunities [APM Body of Knowledge, p. 179]. All projects are inherently risky, because it performed by people and subject to the external influences or environment. Risk is something that it cannot be predicted. That is why into the company’s organization, risk management has an essential and vital part in any project whether that is in the planning procedure or to project implementation. Risks are always exists and can be translated as an opportunity to gain benefits. In addition a risk may incur serious monetary losses. The first step of risk management begins when identifies risk. These are identified through several techniques that risk management can select and use. One of the most effective techniques is brainstorming where members are attending meetings in order to gain ideas of either to identify a risk or how to overcome the arising risk. However a document review technique is also applied which is also very helpful, in this technique, documents are reviewed from prior projects which leads to a better understanding of the risks that may do occur. If a company seeks risk management capabilities, is to gaining competitive advantage, riskier businesses seek potential and higher profits.

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).

However, companies generally adopt a methodology for overall risk assessment. Sometimes these methodologies involve the assignation of risk oversight to leaders in each area. The approach is based upon the assumption that each area knows itself best. However, this often overlooks potential issues in favor of confronting them after they develop. As the need for

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.

Our implementation plan mainly focuses on five risks, which are compliance risk, strategic risk, credit risk, operational risk, and financial risk. The corporation has established risk management committees to assess and manage the corporation’s exposure to the above risks. Then, the committees will prioritize these risks and establish guidelines for risk management processes. After that, it will assign the management of some risks to appropriate operating departments or individuals. The management process and department control activities are monitored by the committee and board of directors. However, each individual within the company has responsibility to identify and report potential risks to their managers.

Scenario: You are leading during the second day of the Self Reliant Camp in the Coffin Bay National Park. While exploring in the Pt. Whidbey Wilderness Area during lunchtime, one of the group was bitten by a snake just above the right ankle. They are complaining of pain and nausea, there are two puncture marks on the right foot.

Collier (2009) claims that the fundamental role of the Board of the directors in a company is to apply risk management and to review the performance of the organisations’ internal control procedures; these two principal processes will support the Board in the setting of the strategic targets, the transformation of the targets into real products and services, the effective business overseeing, and the realistic reporting to the external stakeholders. Apart from the Board, the author suggests that an effective risk management framework must be facilitated by a risk management group, a chief risk officer, external and internal audits, and a mature organisational culture disseminated to the line managers and employees. Under the same concept, Hampton (2009) presented a flow gram that suggests the path towards the establishment of enterprise risk management, starting from the risk recognition and ending to the standardization of a risk evaluation process, having prior involved the Board, the risk owners and the accountable staff.

A risk is an event or condition that, if it occurs, could have a positive or negative effect on a project’s objectives. Risk Management is the process of identifying, assessing, responding to, monitoring, and reporting risks. This Risk Management Plan defines how risks associated with the Charming Café project will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored throughout the lifecycle of the project. It details how risk are prioritized. The Risk Management Plan is created by the project manager in the planning phase and is monitored and updated throughout the project.

We want our Risk functions not only to ensure compliance with existing rules but also review the entire operation of the company through a broad, principle-based lens. CariJam generally believes that the risk function will play a vital role in collaborating with other functions to reduce risk. We hope that the risk function’s tasks will ensure that compliance considerations are always top of mind and not addressed perfunctorily by businesses after they have formulated their strategies or designed a new product.

Currently, several approaches are in use to assess the risk of compounds which are genotoxic and carcinogenic. One of the approaches advised by European Commission is using as low as reasonably achievable (ALARA). However, no risk manager to set priorities for action concerning the urgency was provided (25). Since data on genotoxic and carcinogenic potency from human are rarely available, data from animal study exposed to high dose levels of compound are often used, which then extrapolated using a wide range of models to the lower doses in which human are exposed. Nevertheless, the models to extrapolate the dose often resulted in different conclusion for the same compound. Therefore, the margin of exposure (MOE)

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 operations on a FPSO encounters many hazards or risk to personnel and the environment. Production facilities on the FPSO increases the risk associated with many marine incident.