What Five Principles Within Risk Management Within A Wide Range Of Organisations

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,

However, companies generally adopt a methodology for overall risk assessment. Sometimes these methodologies involve the assignation of risk oversight to leaders in each area. The approach is based upon the assumption that each area knows itself best. However, this often overlooks potential issues in favor of confronting them after they develop. As the need for

Risk Management issues are often handled at the facility where the problem(s) exist. One of the duties of Risk Manager’s is to communication and collaboration between departments within an organization in question. In addition, to sinking risks, and cutting costs in order to promote process efficiency .By analyzing incident reports is one way to correct current problems, and future problem areas. Risk managers are also responsible for certain criteria that must be met in order for full participation in certain government and state reimbursement programs ("World Health Organization," “n.d.”). Risk Management is a structured approach to managing improbability, related to a risk, through a structure of human interaction.

Risk management is the managerial process of plummeting unreasonable and unplanned losses that ultimately affect an organization. To many it is also referred to as a loss exposure handling mode of management. In many organizations especially health facilities such as Johns Hopkins Hospital, losses mainly attributes to a financial crisis and require proper risk management methodologies. There are a lot of risks pertained to many day to day activities, ranging from surgeries to the actions of the health workforce and the subordinate staff. Hence, it is vital to address the risks through necessitated functions and tasks resulting to risk management.

Staffan Engstrom, the strategy director for a major UK company, explains what Risk Management is and why it is important in his video. Staffan does not have to use complex words and does not have to carry out a long elaborate speech. Staffan’s message is simple. This is what he said,

Risk management compiles data of all the factors in the scenario or event that could likely or rather possibly come about from any negative situation. The risk management formula and method of approaching situations more often than not attempts to look beyond the current situation and determine possible outcomes based on experience rational thinking considering all factors. Risk management is more than just an equation however, it is a way of thinking, operating and making good use of ones abilities and resources. It is a much needed skill and practice that should be used continuously as threats to homeland security and defense are always changing and or growing bolder. Along with continuous application, one aspect of risk management is that as threats continuously change it is a constant and always applicable formula that can be used despite the situation. Risk management will always be applicable useful no matter the situation if one is capable of applying it

When the term “Risk management” is mentioned, those that are not familiar with it may not be fully aware of the seriousness of it. It is defined as “the identification, analysis, assessment, control, avoidance, minimization, or elimination of unacceptable risks (Risk Management 2015).” There are a variety of methods that an organization may use in order to properly manage future events, such as risk retention, risk assumption, risk avoidance, and risk transfer as well as many other strategies. Risk management helps to identify, monitor and treat the risks that arise within healthcare.

First, a clear risk hierarchy was introduced which allowing the right people to manage the right risks. Second, the Quantified Risk Analysis controlled the contingency allocation. Key risks were forecast before they occurred which allow the management team to solve the problems in advance. In addition, sufficient contingency ensured the budget maintained as appropriate. Third, a clear and open reporting system created a healthy balance of review in the whole process. Last, assurance and audit promoted an honest culture of risk

All the decision that the business made is affected and has came into consideration of the key stakeholders and the risk associated with it. The process of risk identification, risk analysis and risk evaluation, or known as risk assessment (Garlick, 2007), in this context has applied the risk management process model AS/NZS 4360:2004. Tools like risk register and radar diagram are also utilized to facilitate the evaluation of business risk culture.

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 management is the process of the measurement, assessment and strain strategy of risk. The perfect risk management is a series of processes whose priorities are are arrayed already. The ideal risk management makes the events that can cause the biggest loss or are most likely to happen can be processed priority, while the ones whose risk is relative low are post-processed. With the development of economic globalization and the enterprises, the risk has become complicated and diversified increasingly. The importance of risk management has become prominent increasingly. Risk management includes identification, measurement and control of risk. Due to the negative impact of the risk, many large enterprises, institutions and

As outlined in the International Organization for Standardization ISO/IEC 31000:2009 standard, “the success of risk management will depend on the effectiveness of the management framework providing the foundations and arrangements that will embed it throughout the organization at all levels” .

Similarly, risk management is widely referred in the literature regarding economics, engineering and safety. Channing & Ridley (2008) claim that the element of risk is present in every business activity, and the foreseen, elimination and reduction of risk implications indicate a successful manager. In his work about risk management in the life insurance market, Koller (2011) sets risks as the dominating factor that drives the business governance and roles, the capital and risk appetite, the limits, the measurements and the exposure; all the aforementioned components define the organizational processes. As with QMS, several authors in their studies about safety (e.g. Stranks 2006a, 2006b and 2008, Ferret & Hughes 2007 and 2011, and Waring 1996) have introduced risk management models to be incorporated in the wide organizational structure.

Berg (2010) shows that there are many accepted definitions of risk management. As the proposed research will be examining the occupational and organisational setting of the researcher the definition set by the researchers organisation will be utilised. ExxonMobil corporate risk application guide (2012: 5-2) defines risk Management as the ‘process of analysing,

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