The Purpose of Risk Management in Organizations

Decent Essays
Overview - In general terms, risk management is a way to identify, assess and prioritize risks that are associated with a project or organization. The purpose of risk management is to be proactive in improving places or processes within an organization that may have risks that can be mitigated or controlled and to do something to minimize those risks and the financial exposure to them. In almost any organization, there are potentials for risk and it is the unique nature of these organizations that require contingency planning (Frenkel, et al., eds., 2005).
Scenario- Hyperion College is a relatively small (under 3,500 students) liberal arts college located in a medium sized Midwestern town. Next to the campus is a low-income housing project, originally constructed during the 1960s. Recently, community and law enforcement officials have noted that there have been a number of rapes, thefts, car-break ins, and other crime focused in the housing project area. Hyperion College, because it is privately funded, has a small budget for security.
Risk Assessment Methodology- In general, due to the budgetary constraints and the size of the population at risk, we would recommend a threat assessment approach that uses enterprise management models to integrate and coordinate potential risks campus wide. Instead of using a more fragmented approach, this model examines risk data across various departments, scenarios, and increases the awareness and connectivity between all members of the
Get Access