Strengths And Methods Of Risk Analysis And Risk Management

Speaker's notes: Risk is an everyday part of financial life. There are few decisions we can make which do not come with some degree of risk. However, it is important to understand and distinguish between different types of risks so we can better 'hedge' against potential unforeseen events and minimize our institution's exposure to financial dangers.

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.

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,

It will look at the definitions of risk and discuss two case studies which reflect how the experts’ knowledge has influenced the perception of risks and the subsequent management of these risks. It will also look at the sociological theory of risk created by Ulrich Beck and how

A risk is defined in the Merriam Webster’s Collegiate Dictionary (2006) as a “possibility of loss or injury; to expose to hazard or danger.” Risk management is the act of evaluating and identifying problems that can arise. Also, identifying ways to void or overcome these problems.

Risk management refers to the process of forecasting, estimating and evaluating the possible risks that are likely to befall an organization in the normal process of conducting its activities. It includes the identification of measures, methods, and procedures to mitigate them. Healthcare risk management is the process of estimating and forecasting the potential risks relating to patient safety, staff, adherence to federal regulations, prevention of medical errors and prevention of financial loss of the entire healthcare organization and the steps necessary to mitigate them. Healthcare organizations use service-based ERM.

Risk management’s objective is to guarantee uncertainty does not digress from the attempts from the business goals. All projects, operations and any personal activity inherent some sort of risk no matter how routine mission.

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)

Too much risk can result in critical failure of the business and too little risk can reduce competitiveness. Risk is the effect of uncertainty on objectives which have both positive and negative effects. According to the ISO/IEC Guide 73, risks are the combination of the probability of an event and its consequences which have the potential for benefits (upside) if managed effectively, or the threat of success (downside) as a result of poor assessment and management. Risks are a central part of any organisation’s strategic management; it is suggested that the greater the risk involved, the higher the return. However, this can only be managed by effective identification and treatment of all perceivable risks. Risk management is a process that is supported by a set of principles and structures that are appropriate to the organisation and its external environment and requires a balance between the level of the risk in relation to the size, nature and complexity of the organisation.

Risk management is the demonstration or routine of managing risk. It incorporates getting ready for risk, recognizing risks, examining risks, creating Risk reaction techniques, and observing and controlling risks to decide how they have changed.

Risk management is the attempt to reduce risk by the process of identifying risks, the threats and vulnerabilities associated with them and their consequences, then analyzing and assessing them, and then, communicating that risk to the public. It continues with efforts to minimize these risks through various methods of avoidance, transfer,

One of the key segments of applying administrative safeguards to ensure or protect the association 's health care records or data is known as risk analysis. It is difficult to set up a successful risk management program if the association doesn 't know about the dangers or risks that exist. Risk analysis is generally new to medical field. Couple of associations/ organization implemented formal security hazard/risk assessment before the HIPAA rules publication. This is not enough to prevent the risks in health care. So, health care has to adapt risk assessment processes similarly like other industries

The goal of risk management is to identify and eliminate or evade potential vulnerabilities and threats that are not wanted because it creates losses. The fundamentals concepts and principals of Risk Management apply at home, at work, in the community, and at critical infrastructure locations in because there are risks that can cause losses at these places which should be identified and escaped. For instance, at home there are many vulnerabilities which should be found and ways to evade them determined, houses are vulnerable to theft and accidents like gas leaks which can cause a fire (Pfohl et al. 2010). At work is also applies because there are risks that cause losses that cannot be seen but felt, at work risk management will help mitigate risks like injuries, business losses like employee turnover losses, job losses, and losses caused by employees. The community needs risk management concepts and principals to help them make the better decision to mitigate risks like political risks. Government instability can create losses to a community when there is no sufficient public resources and insecurity. It also applies at critical infrastructure locations because accidents like a plane crash or natural calamities like flooding or earthquake can create great losses including loss of lives. These risks cause great losses, and they should be mitigated by making good risk management decisions.

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

In short, risk management is vital for every organization in order to survive in the uncertain environment. “Risk management starts with a review of all relevant information, particularly from combined risk assessment, consisting of both risk assessment and concern assessment where the latter is based on risk perception studies, economic impact assessments and the scientific characterization of social responses to the risk source” (Aven and Renn 2010, p. 121). Lots of benefits are recognized from effective risk management, including enhanced decision making, improved operational efficiency, competitive advantage, better reputation, and for public service organizations, political and community support will enhance (AIRMIC et al 2010).