Workshop Five – 5.7 Dropbox Turnitin Comprehensive HR Learning Assessment

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WorkshopFive – 5.7 Dropbox: Turnitin Comprehensive HR Learning Assessment

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WorkshopFive – 5.7 Dropbox: Turnitin Comprehensive HR Learning Assessment

Riskmanagement is an activity that involves the integration of therecognized risk, assessment, evaluation of the strategies to manageit, and mitigating such a risk through the managerial resources. Mostof the traditional risk management strategies dealt with the threatsthat emerged from legal or physical causes, such as accidents, death,or natural disasters. The financial risk management, on the otherhand, deals with those threats that can be managed using tradedfinancial tools. The aim of managing a risk is to deplete variousrisks connected to a pre-selected sphere to a satisfactory. Riskmanagement may also refer to different hazards caused by technology,environment, organizations, human, and politics. This paper focuseson the steps used in the process of risk management and varioustechniques used in every step (Cadwell,2009).

RiskManagement

Therisk is inevitable and available in every situation of humans. It isalso present in the daily lives of both private and publicorganizations. There are many definitions of risk depending on thecontext, such as insurance, technical causes, and stakeholder. One ofthe definitions describes risk as an uncertainty that shrouds futureactivities and outcomes. It involves the element of likelihood andthe effects of an event that can potentially influence theachievements of the company’s goals. In the process of riskmanagement, two calculations are carried out: the risk probability,and the scope of its consequences.

TheRisk Management Practice or Process

Therisk management practice is divided into two distinct phases, riskcontrol, and risk assessment, as shown in the figure below.

Identify

Analyze

Prioritize

Plan

Monitor

Mitigate

Figure1: Risk Management Process

RiskIdentification

Inthis step, the managerial team systematically lists all the risksthat can possibly challenge the project to make them unambiguousbefore becoming the major problems. Several ways have been formulatedto look at various project risks a shown in the table below. It isparamount to comprehend different types of risk to enable the projectteam to explore their possibilities.

Generic Risks

Commodity-Specific Risks

Project Risks

Business Risks

Product Risks

Factors considered

Process, tools, managerial, customer, support, sales, estimation, organization, people, tools, and technology.

Table1: Categories of Risk

Genericrisks are the threats to any project initiated by the organization.Examples of generic risks include bankruptcy of the company, changingthe requirements, and losing the key personnel. The project team isadvised to keep the checklist of such type of risks and then assessthe extent to which such risks affect the project. On the other hand,commodity-specific risks are those that can be identified by theclear understanding of people, technology, and the environment of agiven product. An example of a commodity-specific risk is thepresence of a multifaceted network required for testing the demandfor a certain product.

Analyze

Oncethe risks have been identified, the analysis step follows. Throughthe risk analysis, the project team is able to transform the risksidentified into decision-making platform. As a result, every risk isconsidered and rational judgment made regarding the likelihood andthe seriousness of the risk. In every risk, the team should do thefollowing:

Calculatethe probability of the risk:Some risks are either likely or not likely to occur. The team shouldevaluate a scale that shows the given likelihood of a risk.

Assessthe scope of loss:Should delineate the loss of the risk and approximate the impacts ofsuch a risk on the product.

Prioritize

Theproject team should prioritize the risk by ranking them. It is costlyand perhaps unnecessary to react on every risk identified (Cadwell,2009).Some risks have low effects on the project, whereas some have themild likelihood of occurring. Through the process of prioritization,the team is able to take the actions on the risks that have highchances of affecting the project. The team ranks the risks in such away that the high-probability risks appear at the top while thelow-probability risks appear at the bottom.

Plan

Therisk management team should develop a plan for each of theprioritized risks so that the exact action can be taken. Such actionsare also listed in the Action Column Risk Table that is used by everyorganization. The following list shows some examples of the riskplanning actions that should be taken:

  • Information buying

  • Risk reduction

  • Risk acceptance

  • Contingency plans

MitigateIt is the stage where the team develops variousstrategies that are meant to reduce the possibility of the risk. Therisk mitigation process eliminates the risk elements or otherwisesolved. Some of the strategies used to mitigate risks include:

Riskavoidance:The team decides to eliminate the risk if a lose-lose strategy isused. For example, the team may opt to eliminate the specific riskyproduct.

Riskprotection:The company may decide to take an insurance cover for any financialloss that might develop.

Monitor

Afterthe risk identification, analysis, prioritization, and theestablishment of the action to be taken, the team should regularlymonitor the resolution of the risk objects and hence take therequired step. The monitoring process may be done as part of the teammanagement activities or through unequivocal risk managerialactivities. In most cases, the risk management team monitors the topten risks.

Conclusion

Followingthe above essay, it can be concluded that risk management is aboutmaking the decisions that would lead to the achievement of a givencompany’s goals. Risk management should be applied to thefunctional areas and each activity level. Because the risk managementis dominated by the uncertainty of the future outcomes and events, itimplies that planning exercises should be carried out carefully. Byfollowing the six steps involve in the risk management process, anorganization is likely to manage its risks.

References

Cadwell,C. M. (2009).&nbspPerformancemanagement.S.l.: American Management Association.

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