Risk management Assignment Example | Topics and Well Written Essays - 2500 words

fortune watchfulness - duty assignment ExampleIntegrating danger assessment in all(prenominal) process at the organisation improves the woodland of decisivenesss made in avoiding losses and eliminating uncertainties. The approach taken in risk counselling proposes that organizational processes and decisions win a thorough implementation of projected objectives. It therefore implies that risk management principles facilitate the integration of every level of coordination of organizational operations and functionalities. Inclusiveness of every organizational need in the success definition elevates the management of the organization to a vintage point enabling tackling of all challenges. Reliance on the latest digit of information and of the best available quality enables the risk management concept an important organization evolution strategy since it enables anticipation and understanding. Accountability to the human society and every vital stakeholder in the projects unde r the organization ensures that the organization development is in tandem with the aspirations of the stakeholders and to whom accountability is expected. In a precise description, risk management enables the organization to handle all tasks in a responsible manner, cognizance of internal and external demands on the industry. The main principles as set out in Risk Management Standard AS/NZS ISO 31000 atomic number 18 briefly highlighted below. It is in order to state that risk management creates and protects value. Without risk management, the organization would encounter losses through various avenues including legal, security, and human health. When the organization applies risk management, it takes adequate measures to ensure that its objectives ar achieved and losses minimized. Risk management is an important part of the organizations activities and should be considered by all stakeholders in encounter of all processes. Without taking risk into account, decision makers would make choices without regard to important priorities. In view of risk management, managers and other decision makers cautiously undertake various activities and analyse various options before making choices. indecision is nonpareil factor that risk management seeks to explicitly address. This is so considering that many threats and risks that a business encounters practice out unexpectedly and may bring massive losses to the organization. When risk management is done, the losses that may come with risks are minimized. The effectiveness of risk management depends on how it is done. When properly structured, and systematically and timely done, the results of the process are better compared to when otherwise done. Also, effective risk management involves the analysis of threats and risks based on available selective information and using the information available to predict possible outcomes of situations and their probabilities. However, in some cases, data is limited and decision makers have to stretch their minds in their risk management efforts. Risk management is not a measurement procedure but depends much on the internal and external environments of an organization. This means that the risk management activities of one organization may not effectively apply for another business. In addition, cultural and human factors essential be taken into account if effective risk management has to be done. This is so considering that people working for the organization or those external to the organization can affect the business