The Process of Risk Management Essay

The Process of Risk Management Essay

Length: 2569 words (7.3 double-spaced pages)

Rating: Research Papers

Open Document

Essay Preview

Chapter One
1. In your own words, what is risk management?

Risk Management is the process that a company goes through to define organizational assets, threats and vulnerabilities and devise ways to protect them. According to Roper, the importance of risk management as a single function, for an organization is becoming more and more understood within the upper levels of business management (Roper, 1999). Additionally, CEO’s, COO’s and CFO’s worldwide know that every decision will have pros and cons that will carry some degree of risk (“Risk Management”, n.d.).

According to Best Practices website; “Effective risk management delivers far-reaching benefits to all organizations and allows them to keep the business profitable and the organization running”. The benefits of risk management will include:

•Better basis for strategy setting
•Improved service delivery
•Greater competitive advantage
•Less time spent fire-fighting and fewer unwelcome surprises
•Increased likelihood of change initiatives being achieved
•Closer internal focus on doing the right things properly
•More efficient use of resources
•Reduced waste and fraud, and better value for money
•Improved innovation
•Better management of contingent and maintenance activities.

Today there are several strategies and templates out there to help businesses execute risk management at an organizational level. The security professional is also being tasked with acquiring the skills of a risk manager and this is adding new levels to the job.




2. Risk Management is said to be a systems approach. What are the advantages of using a systems approach in the risk management process?

The need for an organization to protect its assets is critical to the organization’s survival. A “...


... middle of paper ...


...tion process. In the security field there are many consultants and consultation companies that will provide this kind of service. Even in organizations that have an in-house security expert, periodic assessments from an outside auditor is often recommended, but regardless of the source, periodic assessments must be made and, in turn, the security manager must be prepared to use all available resources to create a proactive and reactive defense strategy. Because a variety of automated and non-automated methods are employed, the security manager needs to stay current on the known and emerging threats and countermeasures if he expects to be prepared to protect organizational interests. Continuing education, research and periodic risk assessments will all play a part in the success of a comprehensive information security package and effective management practices.

Need Writing Help?

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

Check your paper »

A Critical Step Of The Risk Management Process Essay

- ... 5. Due to the increase in the price of the equipment, it is possible that the equipment can be procured at the higher prices, which could increase the budget of the project and the project might get delayed. 6. Due to the setting up of a new underground electrical line from house power, it is possible that the power line is not safe as water line crosses it, which could result in short circuits or any other electrical damage. 7. Due to construction of the basketball court, it is possible that do not build the swing near the tree house, which could result in risk for the kids using the swing as it is just outside the fence....   [tags: Risk management, Project management, Construction]

Research Papers
1041 words (3 pages)

The Process of Risk Management Essay

- Chapter One 1. In your own words, what is risk management. Risk Management is the process that a company goes through to define organizational assets, threats and vulnerabilities and devise ways to protect them. According to Roper, the importance of risk management as a single function, for an organization is becoming more and more understood within the upper levels of business management (Roper, 1999). Additionally, CEO’s, COO’s and CFO’s worldwide know that every decision will have pros and cons that will carry some degree of risk (“Risk Management”, n.d.)....   [tags: organizational best practices]

Research Papers
2569 words (7.3 pages)

Risk Management Process : Coca Cola Company Essay

- ... Dasani was to be launched in the UK on the 10th February 2004 with it being rolled out throughout mainland Europe by the end of 2004. In order to capture market, Coca-cola spend£7 million campaign on TV adverts, celebrity endorsements and Dasani was also contracted as the official water of the Football league. The adverts slogan of Dasani is pure water, however, the pure water created through reverse osmosis which means they take everything out and add minerals bank in for taste. The UK Food Standard Agency(FSA) guidelines state that the word pure applies only to products where nothing has been added, therefore the inclusion of the term by Dasani could be considered confusing for consume...   [tags: Risk management, Coca-Cola, Hazard]

Research Papers
965 words (2.8 pages)

Risk Management Process Essay

- Purpose The purpose of this Risk Management Process document is: • To provide a framework to track and monitor project risks throughout the project lifecycle • Establish roles and responsibilities of all participants in the process Scope This process will be used by the entire project team. As such, this document defines the Risk Management process and flow for a project. Description A risk is any factor that may potentially interfere with a successful completion of a project by having a negative impact to scope, cost, quality, or timeline/ schedule....   [tags: Business Risk Management]

Research Papers
1605 words (4.6 pages)

The Risk Management Process Essay

- Risk Management Process Identify Risk Risk identification, focuses on identifying which risks will affect a project, by looking at the project plan, the work breakdown structure, the project charter and other project related documents (PMBOK, 2008). Broad risk categories are human resources, technology changes, quality and performance issues, customers, vendors, management, funding, political, legal, market forces and environmental issues (PMBOK, 2008). Risk identification involves forward and creative thinking by project stakeholders (Hilson, 2003)....   [tags: Business Administration]

Research Papers
1894 words (5.4 pages)

Risk Management : An Effective Management Team Essay

- ... Recently, we were penalized and pleaded guilty to a series of federal crimes, in which individuals within the company conspired to manipulate the world currencies (Corkery “Rigging of Foreign…”). The price-fixing scheme only exemplifies the need for an effective risk management team so as to avoid reckless risk-taking and other issues like this one in the future. It is crucial that we fix and reassemble a better team because poor risk management can result in several negative effects. The first of these negative effects is a decrease in trust from shareholders and clients....   [tags: Risk management, Risk, Management, Uncertainty]

Research Papers
856 words (2.4 pages)

Risks Of A Risk Management Program Essay

- When you first think of risk management you think of having control, problems that may occur, or problems you can prevent from occurring. Risk management is a popular term and is very important when planning for a business. As an accountant, you always want to be very aware and alert. Given the economic landscape of the past years, a company’s business model is challenged constantly by competitors and events that could give rise to substantial risks (Byrnes, Williams, Kamat, & Gopalakrishnan, 2012)....   [tags: Risk management, Management]

Research Papers
1823 words (5.2 pages)

Portfolio : Risk Management Plan Essay examples

- Portfolio: Risk Management Plan The concept of risk management is relatively new, as hospitals look to prevent hospital-acquired infections (HAIs), falls, injuries, and other forms of preventable harm, rather than reacting once harm has already taken place. Before this concept became a best practice, most health organizations relied on malpractice and liability insurance to protect against losses and mitigate the effects of accidents and poor patient outcomes (Colorado State University-Global Campus, 2014)....   [tags: Risk management, Management, Patient]

Research Papers
1309 words (3.7 pages)

Risk Management at the Llondon 2012 Olympics Essay

- Introduction and Background Introduction The objective of this paper is to define and analyse what risks management was carried out during the London Olympic Games, aspects of risk management such as how risks were identified, the type of risk analysis that was carried out, the risk responses opted in order to minimise threats, and how risks were monitored and controlled will be analysed further. After obtaining this information, a comparison with other Olympic Games will be analysed in order to learn what they did right, wrong, and how they managed risks....   [tags: Risk Analysis, Risk Management]

Research Papers
1790 words (5.1 pages)

Risk Management in Banking Essay

- Introduction During 2000 BC, the development of banking industry emerged. The exchange of grain or goods between farmers and merchant were termed trading. Bank is financial intermediaries which accepts deposits from general public and organizations and are engaged in lending activities. In other word, banking business is the business of receiving money from the market through deposits and paying or borrowing the fund to the capital market and general public as well. Banks undertake various financial activities such as investment banking, private banking, insurance, consumer finance, corporate banking, foreign exchange trading, community trading, future and options trading, money market trad...   [tags: Risk Management Essays]

Research Papers
1029 words (2.9 pages)