Risk management is an integral part of our daily lives and has been since we could think independently as small children. Is it safe to cross the road? Can I afford to buy that this month? Will I get caught if I don’t go to school today? These questions form the basis of risk management; there are consequences to our actions and those consequences need to be considered and managed.
A risk can be defined as implied future uncertainty about deviation from expected earnings or an expected outcome. Risk measures the uncertainty taken to realise a gain .
The list of threats faced by organisations is wide and varied. (Mar, 2016 ) States that there are 65 different risks identified that can affect companies the list is extensive and it can include financial, operational, physical, reputational, employee, or environmental risks. Just as varied are ways to deal or manage these threats both in the manner they are identified and in the method they are dealt with. In order to deal with any risk the first task is to identify that one exists in the first place. This can be achieved by using a risk cycle process. There are many to choose from and their effectiveness is very much a trial and error process. Theodore Roosevelt once said “Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.”
The main steps through the risk management cycle:
• The first action is risk identification.
• You then assess and evaluate those risks.
• Plan
The purpose of risk assessment is not to remove risks, but to take reasonable steps to reduce them. The process involves looking at the risk, and considering what can be done to make it less likely that the risk will develop into a reality. This can be done through implementing policies and codes of practice, acting in individual’s best interests, fostering culture of openness and support being consistent, maintaining professional boundaries and following systems for raising concerns.
Risk is defined by the probability of injury, harm, loss or danger. We all take risks every day, and don’t even think about implications.
• 32. You must act without delay if you believe that you, a colleague or anyone else may be putting someone at risk
For many people risk is an accepted part of everyday life. Every day activities such as catching the bus, travelling on holiday, playing football, setting up home and starting a family all carry some element of risk.
* There are three (3) schools of thought regarding risk. The first considers the positive and negative aspects of risk, but sees them as separate. The second group believes that there are benefits from treating threats and opportunities together, while the third school does not label uncertainties, but addresses uncertainty as part of “doing the job.” Argue the value of having a risk strategy despite the cost associated with it. Include an example to support
Beck explains that our society, encapsulated within an era of advanced modernity, is dominated by the pervasiveness of risks. Bell provides an in-depth examination of the relationship and tension between ‘rational’ conceptions of risk and the democracy of knowledge. Rather than a new feature of modern industrial society, Bell argues that the problem of using wording like "risk" represents a modern conceptual language for discussing the age-old problems of uncertainty and control. The modern day thought process in regards to hazards and their risk, is not about the number of hazards we face or the degree of uncertainty but rather the language we use to think and talk about them. Bell titles this as highly rationalistic (p. 238). Bell states
Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)
The word “risk” means the possibility of suffering a harmful event. Risk taking can bring either positive or negative result because anytime we take risks in life, there is a possibility of loss which can cause tension. There are a lot of people who take big risks and appear not to be affected by them. But, many of us feel very uneasy when faced with risk-taking; we may become worried about the risk. Although some people are content in life by just playing it safe and not courting any
As the financial crisis seems largely behind us and the worldwide economy continues to improve, people are getting excited; looking away from the latest disaster to the next big thing. Businesses are successful once again and unemployment is hitting new lows. When people get this excited, it is time to think about risks.
There is no single definition of risk. Many insurance authors traditionally have defined risk for uncertainty. A risk is an uncertainty concerning the occurrence of a loss.
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)
Risk can be defined as “The possibility of a (negative) event occurring”. Risk and uncertainty go hand in hand. When you are certain about something that you do then there is less or no risk involved. There is more risk when there is uncertainty about a particular outcome and you still go for it.
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
Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.
Organizations are forever trying to fight off threats that try to harm their business and cause loss in business, money and effect their reputation. In this report I will go over what the threats are and how serious they can be at damaging an organization. The most common threats to organizations are malicious damage, threats related to e-commerce, counterfeit goods and organization damage.