Risk Management And Regulation Challenges Faced By Businesses

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

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,

Enterprise Risk Management (ERM) is a series of processes used to identify risk, implement strategies to address risk, and monitor impact on the organization. Indeed, an effective ERM will consist of a corporate profile, which is a record of key risks that would hinder the organization in achieving their key objectives (Fraser & Simkins, 2010). Ideally, the risk profile is created as a tool to communicate with the Board of Directors, but may be used as a means of communication with all levels of management (Bethel, 2016). Typically, there are variations of the risk profile based upon the level of management, such as duration, types of risk, and purpose (Fraser & Simkins, 2010).

The theory of planned behaviour (TPB) developed by Ajzen and Madden (1986) is one of the most extensively used theories explaining the attitude-behaviour relationship (Manstead & Parker, 1995). The TPB has three principal constituents, attitude toward the behaviour, subjective norm and perceived behavioural control (PBC). The relationship of these factors to behaviour is mediated by behavioural intention (Ajzen & Madden, 1986). The first component of the TPB, attitude is defined as, the amount that the behaviour to be performed is positively or negatively evaluated (Ajzen & Madden, 1986). The second

Engaging in exercise everyday would help reduce the risk of lifestyle diseases, such as diabetes and cardiovascular diseases. The counties could also educate the people on the dangers of smoking and as such spearhead campaigns to help people quit smoking. The theory of planned behavior is used to predict deliberate behavior in individuals since behavior can be planned and deliberative. The theory could be applied in reversing the health trends in the counties with emphasis on whether to exercise or use condoms when having sex. Further, there exists a correlation between independently healthy eating behaviors with barriers, such as attitude, perceived behavioral control, and subjective norm, evident in the theory of planned behavior3. The health policymakers in the counties would have to assume that people process every piece of information and act accordingly and thus would be compelled to quit smoking and result to exercise. This theory would fit the intervention plan due to its efficiency to explain intention, perceived behavioral control being as important as attitude across health-related behavior

It has substantial success in predicting a variety of behaviors (Conner & Sparks, 1996). It details the causes of an individual's decision to behave in a particular manner. Theory of Planned Behavioral is rooted in the fact that behavior reflects expected value. It aims to explain rationally motivated, intentional health and non-health behaviors. Extremely specific behavioral intentions measures that closely match the intended behaviors are used in the Theory of Planned Behavior. Behavioral intention measures can assess planning. The Theory of Planned Behavioral provides an account of the elements of behavior when both motivation and opportunity to process information are high (Conner & Armitage, 1998). Self-efficacy plays a vital role in this

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.

This report will endeavour to explain the theory of planned behaviour. The report will outline a detailed explanation of the theory highlighting all aspects of the theory in some detail with examples. The report will delve into the applications of the theory of planned behaviour. The report will highlight the necessary steps in obtaining information needed for the application of the theory. The theory will then be used to provide an explanation of the behaviour. Strengths and weakness will be covered throughout the report, via the use of academic journals to assist with the explanations. Limitations and advantages of the theory of planned behaviour will be covered as well as recommendations of how the theory can be improved.

The Theory of Planned Behaviour is based around three central factors for the intention to form. These include: Attitudes towards the certain behaviour, perceived

The Theory of Planned Behavior was designed to analyze the link between attitudes and behavior and help to predict and explain human behavior. The thought behind the theory is that it will help to understand how we can change people’s behavior. The theory is based on three defining factors about beliefs. The three types include normative beliefs, behavioral and control beliefs. Behavioral beliefs are described as the attitude that she hold towards the behavior, while

These intentions are “indications of how hard people are willing to try, of how much of an effort they are planning to exert, in order to perform the behavior” (Ajzen, 1991, pp. 181). Another factor that plays into this dynamic is whether an individual has volitional control over a behavior, meaning if a person has a choice to perform or not to perform this behavior (Ajzen, 1991). In addition, resources such as time, money, skills, and cooperation of others affects the ability of a person to perform the behavior (Ajzen, 1991). Ajzen continues to describe the major factors of the model with the concept of perceived behavioral control, which together with intention, can be used to predict the achievement of a behavior (1991). An example given to explain how a constant intention or an effort leads to a successful behavior is two individuals who have the same strong intention of learning a new sport; even if both people share an equal desire to learn and both attempt, the individual who has more confidence will most likely succeed than the other individual who doubts his or her ability (Ajzen, 1991). All of these factors must be considered when predicting

Last, we have the (3) Theory of Planned Behavior. The Theory of Planned Behavior, also known as (TPB), is a concept proposed by Icek Ajzen that link beliefs and behavior. It was added to the Theory of Reasoned action to address the inadequacies of the existing model. It is one of the most influential and popular conceptual frameworks for the study of human actions. This theory proposes a model, which can measure how human actions are guided and details the determinants of an individual’s decision to enact a particular behavior. Attitudes,

From Week 4 lecture, I have learnt about the Theory of Planned Behaviour. Initially, I thought that if a person intend to do something, they will put in their best effort to do it. However, I realized that I was wrong because ‘intention does not always accurately predict behaviour when there is a reflex or conditioned response involved.’(Long-Crowell, 2003) For example, ‘my friend with a phobia may intend to stay calm and collected when faced with their fear, but may end up having a panic attack instead.’(Long-Crowell, 2003) After this lecture, I have learnt that this theory explores the relationship between attitudes and behaviour. A person who have the intention to change is determined by attitude, subjective norms and perceived behavioural control. For example, a person who know about the negative effects are more willing to quit smoking.

There are changes that insurance companies must undertake, not just to survive, but to succeed in today’s market. One of those changes is how the business manages risks. Risk management was listed by PricewaterhouseCoopers LLP, as one of the top insurance industry issues for 2013 (Top Insurance Issues, 2013). Risk management for insurance companies “is the process by which companies systematically identify, measure and manage the various types of risk inherent within their operations” (Risk Management, 2013). One of the objectives for sound risk management program is the ability to manage the exposure of the business to capital volatility and potential earnings. Despite the fact that not all risks may be removed, businesses still must identify, assess, control, and mitigate risks. A comprehensive risk management program allows organizations to identify and quantify their risks and to set risk tolerances based on corporate objectives. According to Risk Management (2013), risk management tools and practices across the insurance industry have advanced significantly in recent years. Implementation of risk management programs, which include models for economic capital, catastrophe management and hedging programs have helped the insurance industry to respond to the ever changing risk dynamics.

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