The List Of Threats Faced By Organisations Essay

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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
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