Introduction
Risk Management may be a comprehensive thought that has recently gained great thought attributable to its importance in nearly every profession. Massive organizations chiefly have shaped a committee, team, or department's risk management to require care of risk management. Still, throughout the chance management method, each worker within the organization is duty-bound to play its half-all told the stages, for instance, compliance with policies and procedures.
Risk Identification and Reports to completion
However, this chiefly links with the money risk assessment (Elise Omolara, 2010). There is also risk management in protecting worker's rights in the field of human resource management. This space is critical that the Board of administrators of each organization supplies the mandatory safety for human and money resources.
Purposes of Risk Assessments are,
To recognize potential problems before they occur so that risk-handling activities may plan and invoked as required across the life of the product or project to mitigate adverse impacts on achieving objectives.
Literature Review
Managing risk is very different from managing strategy. Risk management focuses on the harmful threats and failures rather than opportunities and successes. - Robert S Kaplan
Risk management is a more realistic term than safety. It implies that hazards are ever-present and must be identified, analyzed, evaluated, controlled, or rationally accepted.- Jerome F Lederer
Risk Management makes,
Jobs safer, Enable Project success, Reduces unexpected events, Creates financial benefits,
It saves time and effort, Improves communication, Guides decision-making, Benefits culture.
Five Steps of the Risk Management Process
Step 1: Identify the Risk. The first step is to recognize the risks that the business exposes to in its operating environment.
Step 2: Analyze the Risk
Step 3: Evaluate or Rank the Risk
Step 4: Treat the Risk
Step 5: Monitor and Review the Risk
Image 1: Elements of process-Safety Management (Source:www.sphera.com, 2021)
The Globalization of Risk Management
Globalization affects almost every business. However, an organization operates solely within the USA. Its customers, suppliers, and motion staff could all be in another country. This means the laws, rules, and cultural variations in those areas are doubtless impacting the organization. Corporations with no physical presence outside the USA are littered with international rules around problems like knowledge privacy. For example, the overall knowledge Protection Regulation (GDPR), a law regulating however corporations shield the non-public knowledge of voters within the international organization, carries stiff penalties for disobedience. Businesses should bear in mind the tenets of the law and cling to them.
Conclusion
The risk analysis process assists the effective and efficient operation of the organization by identifying those risks which require attention by management. They will need to Priorities Risk Control Actions in terms of their potential to benefit the organization.
References
Mohamed, H.Y., Aboslema, R., Gad, Y., Morsy, D.M., Elfarargy, R.A., Alsayed, H.M., Elkafrawy, A.M., Drakoun, M.H., and Gad, M.M., 2020. Establishment of Health Pharmacy Project to Ensure Medication Safety in Portsaid. Medicine Updates, 3(3), pp.60-74.
Rahman, A.H.B.A., Nazir, A., Hyun, K.T. and Yarng, T.H., 2020. Software, Attacker and Asset-centric Approach for Improving Security in System Development Process. arXiv preprint arXiv:2012.10881.
Starr, R., Newfrock, J., and Delurey, M., 2003. Enterprise resilience: managing risk in the networked economy. Strategy and business, 30, pp.70-79.
Furst, P.G., 2011, June. Managing System-Driven Incidents–A Business and Performance Approach. In ASSE Professional Development Conference and Exposition. OnePetro.
Risk management is an important process because it empowers a business with the necessary tools so that it can adequately identify and deal with potential risks. Once a risk has been identified, it is then easy to mitigate it. In addition, risk management provides a business with a basis upon which it can undertake sound decision-making. Thanks for sharing Mihirani.
ReplyDeleteAgreed with your conclusion Mihirani.
ReplyDeleteThough the risk is unavoidable in business, an effective risk management strategy can help minimize costs and mitigate risk's negative effects. HR teams that take a proactive strategy to risk management will be prepared with a correct answer that ensures the company's and its employees' well-being. you have described those areas nicely in your post.
Good work!
ReplyDeleteGreat article Mihirani, Businesses and all most all the organizations are operating in a challenging environment. Having a proper risk management system is best way to deal with potential risks. harmful events that can cost the company money, reputation damages and even cause it to permanently close operations. thus managing and preventing risk by having proper risk management system is important.
HR risk identification is the process of finding and establishing temporal, quantitative, spatial and other factors necessary and sufficient to develop preventive and operational measures aimed at ensuring the quality of HR risk management. Thankyou for sharing this important article.
ReplyDeleteIn modern competitive environment employers take managing risk subject quite seriously, in order to avoid the kinds of crises that can destroy value, ruin reputations, and even bring a company down. Having a strong risk culture does not necessarily mean taking less risk in fact, take a high risk, acquiring new businesses, entering new markets, and investing in corporate growth. Thanks for this detailed article Mihirani.........
ReplyDeleteThank you for the article Mihirani,
ReplyDeleteJob analysis, creating job descriptions, hiring, orientation, training, employer/employee interactions, performance evaluation, pay, and discipline are all parts of the human resource management process. Understanding these actions enables the connection between human resources and risk to be better understood. Failure to effectively carry out these tasks raises risk and penalizes the company by preventing it from capitalizing on the potential contributions of its employees (Ervin, 2019).
By executing a Risk management plan and considering the different possible dangers or occasions before they happen, an association can set provisions and ensure their future. This is on the grounds that a strong danger the risk management plan will assist an organization with building up strategies to stay away from expected dangers, limit their effect should they happen and adapt to the outcomes.
ReplyDeleteMihirani it's a very valuable article. By implementing a risk management plan and considering the various risks or events that may occur an organization can save money and secure their future. risk management plan will enable a company to establish action plans to mitigate potential threats and minimize their impact and deal successfully with the consequences. Furthermore, strong corporate governance principles with a special focus on risk management help a company achieve its objectives.
ReplyDeleteRisk management is an important activity because it provides a company with the tools it needs to detect and manage potential risks. It is simple to reduce risk once it has been identified. Risk assessment is the greatest way for a firm to prepare for unforeseen events that may impede progress and growth.
ReplyDeleteTimely topic Mihirani. The importance of RM is mostly discussed during this pandemic. Having a stratergic plan of risk management is very important to mitigate the event risk as well as the credit risks involved ij.
ReplyDelete