Risk Management Is Important Within An Organization Essay

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,

Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).

Because of rapid economic growth in XXX over the past years has increased the fear of major business failure, risk has become an overwhelmingly dominant business topic. As a result, top managers are now focusing on risk management in their companies. As each business entity struggles with its own set of needs and circumstances, the need and flexibility to address this continuously changing and volatile economic environment, would be extremely challenging and fulfilling to me.

MEJRI, Mohamed, and Daniel DE WOLF. 2013. "Crisis Management: Lessons Learnt From The BP Deepwater Horizon Spill Oil". Business Management And Strategy 4 (2): 67. doi:10.5296/bms.v4i2.4950.

Each flowchart step is placed in the “Lane” for the group responsible for completing the task (Marketing, Sales, HR, etc.).

According to IRM-AIRMIC-ALARM (2002), risk management actually defines every organisational strategic management; it comprises the process which identifies and treats the internal and external risks and adds sustainable value to the organisation and its stakeholders by decreasing the probability of not achieving the organisation’s overall objectives. The specific institutes suggest that risk management lies in the strategic, tactical and operational levels, and its embodiment in all tasks and roles is required; it is a consistent manner for an organisations’ operation, which leads to effective decision making, efficient allocation and protection of the organisational assets, and enrichment of the organisational

Many reports said that the spill was a result of BP poor risk management. Risk management is the continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control. It is founded at the top set by executives who support a corporate culture that raises awareness about key risks and to handle them throughout the organization.

On 20 April 2010, an explosion at Deepwater Horizon oil rig in the Gulf of Mexico killed 11 workers and led to the worst oil spill in the US history. The well owner BP was found to be responsible for the leak. The report will identify the risk management issues raised by the case and discuss the firm’s actions towards those issues. Also, an analysis of its crisis management followed by the comparison with Johnson & Johnson’ Tylenol Crisis is another focus in this report. Furthermore, lessons from the oil spill will be concluded and several recommendations will be presented to develop effective risk management system. In general, this report aims to assess BP’s failures in risk and crisis management and then find proper management practices

BP (British Petroleum) is one of the leading companies that are delivering energy products and services to the people around the world. In this report, we studied BP’s risk management plan for preventing oil spill. The main reason for choosing BP and its oil spill preparedness plan is that the oil companies have become increasingly vulnerable to unwillingly cause disasters and BP is one of them. An event that highlighted this vulnerability and subsequently drew attention to the need to investigate, is the BP oil spill in 2010 was one of the worst oil disasters that affected environment adversely. Issues such as these have been a serious concern for the oil companies around the world.

develop a methodology for quantifying risks, or should each situation be addressed individually? Can we have both a quantitative and qualitative risk evaluation system in place at the same time?

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)

The oil spill in the Gulf of Mexico in 2010 resulted in considerable damage to the environment, economy and human livelihoods. While BP, as one of the parties involved in the operation of the oil drilling on Deepwater Horizon rig, suffered huge financial loss and reputation loss, it was found to be the one to be mostly blamed due to its lack of risk management. As poor risk management can lead to an astonishing disaster like this, it appears to be necessary for every business to learn from BP’s mistakes and try the best to prevent such disaster from happening again. This report studies this case, focusing on two issues identified in BP’s risk management practices, namely its sloppy preparation for risks and its inappropriate communication strategy after the crisis happened. No evidence showed that BP had a sufficient emergency plan for the worst-case deep-water oil spill although the depth of the oil drilling was one of the deepest. BP’s unseriousness towards safety was also indicated in their attempt to shift blames to its contractors and the unaccountability shown by the words of BP’s executives during interviews. Based on the examination of BP’s deficiency in risk management, the lessons that can be learned from it are discussed. In brief, firstly, accurate risk assessment and appropriate emergency plan should be available before the operation is started. Secondly, post-crisis communication should show the world that the company cares and is accountable

The business environment is constantly changing; it is unpredictable, extremely volatile and complex. This makes businesses exposed to risk because of the nature of the environment. It is therefore important for businesses to make strategic decisions on how to either reduce or make the effect of the risk less severe as much as possible. Businesses have to identify and manage their risks to ensure their success and continuation. According to the Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Uncertainties present both risks and opportunities, with potential to erode or enhance value.i Risk management is an increasingly important business driver and stakeholders have become much more concerned about risk. The 2008–2009 global financial crisis and the rapidly deteriorating global economy has created a context in which companies now face risks that are more complex, more interconnected, and potentially more devastating than ever before. Failure to adequately acknowledge and effectively manage risks associated with decisions being made throughout the organization can and often do lead to potentially catastrophic results.ii Risk may be a driver of strategic decisions, it may be a cause of uncertainty in the organization or it may simply be embedded in the activities of the organization. A good Risk Management program means that the company is able, first of all to identify, then to measure risks, to project, to

The image as well as the operational business reputation of a corporation is critical to the survivability of the corporation in today’s business world. Today we will put our focus on one of UK’s largest multinational oils company’s. In the case with British Petroleum (BP) as it actively explores oil in 26 countries around the world, due to BP’s lack of focus on the safety issues presented in the 2004 Telos Group report coupled with the oversight and control to correct safety hazards, the Texas plant experienced a disastrous fire and explosion killing 15 workers and injuring 180 other personnel as stated by Halbert and Ingulli (2012, pg. 185) An investigation by the Chemical Safety and Hazard Investigation Board released a report in 2007 that revealed process safety leadership issues starting with senior management as well as disregarding safety concerns throughout BP. This paper will attempt to look at various details of the Critical Success Factor of British Petroleum (BP). We will then determine how these factors impact the success of the firm through project benefits, risk culture and organizational readiness. In this paper we will also provide project risk recommendations that will allow companies to plan accordingly when dealing with risk management task this way they will focus more on responsibilities, safety activities and budget. Lastly, we will create and identify checklist based on the categories of risk.

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