Contemporary risk challenges to measuring and managing risk
Risks are something bad that could happen to individual or organisation that may cause long or short time negative consequence. Organisation set measurement and management policy in place nevertheless, below listed challenges could hinder the implementation success.
A. Contemporary Risk challenges to measuring
1. Lack of skilled resources: organisation should have an expert available to use required tools to collect, process, analyse and document the data for effective risk mitigation (Shacklett, 2012). In addition, there is not enough competent staff to evaluate risk in the team for effective and strategy execution. (Culp, 2013)
2. Organisation or individual perceives of the risk; the way people think about specific cause and consequence of risk will determine their level of response and not according to an objective risk level (Hubbard, 2010), (Sjoberg & Drottz-Sjoberg, 2010).
3. Financial constrain: how much money is available to set up risk measuring tools and maintenance culture will threating or encourage the measurement of the risk plan should in case thing go wrong.
4. Poor understanding or Risk mechanism. Manager failure to properly define and lack of understanding of the risk level will generate wrong prediction and provision of wrong measuring tools (Hubbard, 2010).
5. Cost of failure: according to (Rayner, 2011) 47% of organisation want to reduce there operational, strategic planning cost to gain competitive advantage over their rival. And this why the cost of eventuality should be in case things go wrong example London riot 2012 where john Lewis store was looted in Croydon and goods worth of thousand were lost due to improper handling of the situation ...
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