Managing Any Type Of Business Or Organization Can Be Risky And Challenging

Managing Any Type Of Business Or Organization Can Be Risky And Challenging

Length: 705 words (2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Successfully managing any type of business or organization can be risky and challenging. While some potential risks can be quite costly and time consuming when it comes to needed repairs or damage control, others can literally destroy a business. Although risk is the main cause of uncertainty in any organization, a solid risk management plan can help minimize any damage should potential risks occur. There are six simple steps in the risk management process: identify your risks; analyze the risks; control the risks; monitor those risks; improve your risk management; and report progress.
The first of the six steps is identifying risks associated with in your organization. These risks can be both internal and external: economic; environmental; social and product responsibility; human rights; and labor practices. By pooling your resources, mainly your employees, into one room you have a better chance of producing a more comprehensive list of risks. An organization’s refusal to acknowledge or accept risk leaves it vulnerable to utter failure (Krivkovich & Levy, 2013, p. 125). If an organization identifies its future intentions without considering all associated risks, chances are they will quickly lose direction.
Once risks have been identified, it is now time to assess and analyze each risk. Risk managers must only accept risks that have been properly evaluated and all relevant factors considered (Connor, 2010). Once a manager has gotten to this stage of the process it is important that a list of pertinent questions be written down to facilitate in the analysis. Assessments should consider the probability that a risk will happen and the consequences of the impact associated with the risk. Many will find it surprisin...

... middle of paper ... mitigate those risks. To assess the effectiveness of the risk management plan there must be an established set of standards and point of reference information. Routinely revisit the plan and evaluate it for new risks or modify existing risks. After certain actions are successfully completed consider revising the plan and conduct another analysis.

Risk management is most effective when it is an accepted part of a company’s culture Identifying and understanding risk is a factor that must be known by all employees in a company. An effective risk management plan can reduce any adverse effects, diminish losses and eliminate the fear of bankruptcy (Simona-Iulia, 2014, p. 282). An organization must treat risk management as an uncertainty and in doing so can gauge the effectiveness of its methods in terms of accuracy, completeness and timeliness (Schwartz, 2014).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

What Makes A Team Organization? Essay

- In a business world where competition is heavy and success is difficult to maintain it cannot be stressed enough how important it is to find the right way to structure an organization. There are numerous ways in which a business can be organized and this can be a leading determinant in how a business operates and performs on a daily basis. Many organizations are beginning to make the transition to a more team based structure, a structure that is less hierarchical in nature and more driven towards combining employees to complete an objective in the most efficient, best way possible....   [tags: Management, Organization, Structure]

Better Essays
950 words (2.7 pages)

Essay about An Organization Structure Of An Organisation

- Unit 1 In P3 An organisation structure of an business is vital for an organisation to make it to operating successfully, however the organisation structure should match the needs of the organisation like there functional needs, appropriate lines of communication and the structure to help the organisation to achieve there preventing and solution goals. Organisational structure is particularly important for decision making. Most companies either have a tall or flat organisational structure. Small companies usually use a flat organisational structure....   [tags: Management, Structure, Organization]

Better Essays
1002 words (2.9 pages)

Essay about Managing A Toxic Waste Disposal Business

- Stan 's plan to operate a toxic waste disposal business as a sole proprietorship raises two significant concerns. As a sole proprietor, Stan will assume unlimited personal liability for all business obligations as there is no legal or practical separation between the business and the owner. Any financial obligations or legal torts would apply to the business, and also, his personal assets. Secondly, Stan, as sole proprietor, can only borrow money directly, limiting growth, and could be considered a risky investment for lenders when they assess his ability to repay the debt, and the nature of the business....   [tags: Corporation, Business law, Types of companies]

Better Essays
754 words (2.2 pages)

Outgoing Travel Organization Business Plan Essay

- Outgoing travel is an organisation based on the idea of fun and freedom. If you are part of a society, club, international society or just a group of friends, they make it easy to organise life changing trips to destinations and events throughout the UK & Europe. They organise day trips, weekend breaks, events and festivals and many other exciting ventures for anyone with a sense of excitement and fun. Where is the company located. The address of a local outgoing travel organisation is located below: 25 Brunswick Rd Manchester, Greater Manchester, M20 4QB Tel: 0161 610 2000 The company’s main objectives....   [tags: business plan, travel,]

Better Essays
1436 words (4.1 pages)

Leading and Managing Today's Organizational Teams Essay

- Technological advancements coupled with consumer demands in a global market forced businesses to change from the traditional nine-to-five work day to a twenty-four hours a day, seven-days a week world. Maintaining a competitive edge is a matter of survival in today's weak economy. Successful leaders and managers recognize they must continue to find new and innovative ways to meet customer needs by utilizing the creative power of groups and teams. This paper will explore understanding group dynamics and the distinctions between leadership and management....   [tags: Business Management ]

Better Essays
2476 words (7.1 pages)

Essay about Managing Organization with Wide Change in Hierarchical Organization

- Managing Organization with Wide Change in Hierarchical Organization What is Change. =============== “It is not the strongest of the species that survive nor the most intelligent but the one most responsive to change” - Charles Darwin In a world of new technologies, transforming economies, fluctuating consumer preference and dynamic competition, it is not a question of whether firms should change but rather when, where and how they should change. While change could be seen everywhere not all is of a strategic nature....   [tags: Papers]

Free Essays
3488 words (10 pages)

Functions And Functions Of An Organization Essay examples

- P3 A typical organisation may consist of the following functions, operations, Marketing, Finance, Human resources, Research and development, Sales, Production, Manager, supervisors, IT, Operations function – This is key to overall organisations performance as it is where a number of process come together to make the product and services to satisfy customer needs. However, the operations function needs the support of services in: Finance – To manage the flow of money across the organisation. Finance managers produce financial and management accounts not only to ensure legal compliance but also to contribute to the strategic decision – making process by forecasting financial performance....   [tags: Organization, Management, Strategic management]

Better Essays
804 words (2.3 pages)

Challenges of Managing a Non-Profit Organizations Essay

- There are different challenges a non-profit organization face, although I believe that those same challenges are faced on for profit organization either at the same level or very similar. Trust is an issue that both non-profit and for profit organizations will encounter at some point in their business and therefore they would need to be as transparent as possible. Transparency entitles you to provide clear statements of where your money goes, how it is utilized in your organization, and how it is making your organization accomplish their goals....   [tags: Business]

Better Essays
2025 words (5.8 pages)

Managing Change in Organizations Essay

- Managing Change in Organizations We will like to start with some facts to show the importance the importance of managing cultures in the organisation and how lack managing changes could haunt back the companies in terms of mergers and acqusions. The challenges to merge, and so change two organizations is so huge and it always requires a lot of resources and the right people. According to Business journal ’The successful merging of cultures is difficult, traumatic, and crucial. Individuals and companies with different histories, values, expectations, and beliefs are asked to adopt a unified perspective and to serve as a cohesive unit....   [tags: Business Management]

Free Essays
1980 words (5.7 pages)

Lifelong Learning For Organizations: Managing Inclusiveness and Growth Essay

- Lifelong learning, as a concept, has recently received a lot of attention. It has, however, been viewed largely in the context of individuals and as to how they need to continuously learn and evolve in a knowledge economy. The concept places value on flexible learning strategies, multidisciplinary and flexible approaches to curricula, and up gradation of skills to respond to the demands generated by the external environment. The external environment, however, effects not only individuals but the organizations as well....   [tags: knowledge, lifelong learning, organizations]

Better Essays
2576 words (7.4 pages)