Write a report that demonstrates the principles, concepts, types, frameworks and processes of Risk Management through the following:
A. Define the concept of risk in an organisation (or an example case study organisation) and show how it might be closely tied to the amount of information that is available to make decisions.
B. Describe the various types of risk prevalent to the organisation
C. Develop a framework for handling risk in the organisation
D. Develop a systematic risk management process in the organisation.
Prepare an outline for a business continuity plan that builds on the previous points.
Take into consideration the following:
A. Possible comparisons between the techniques of employment weighted checklists, risk logs, brainstorming sessions, behavioural models, diagramming techniques, flow charting, and conducting productive meetings and suggest their strengths and weaknesses in the organisation
B. The inmpacts of risk events in the organisation through the possible use of qualitative techniques
C. The impacts of risk events in the organisation through the possible development of quantitative risk models
D. The application of conditional probablities and statistical distributions in analysing risk models
E. The difference between business continuity and recovery as applied to the organisation
References must be provided for further analysis.
Risk management is the process of identifying, analyzing and evaluating the risk and selecting the best possible methods for handling it. Risk means the uncertainty of outcomes. Risk management is the activity performed by humans that includes identifying risk, risk evaluation and developing a plan to manage the risk (Alan & Dempster, 2002). Risk is minimized by utilizing the resources and expertise. It covers different types of risk in a corporate enterprise pertaining to market, credit, liquidity, event or operations (Leon, 2007).
We can understand this with the example of Wal-Mart. Measuring the risk is the important function of the management in the changing global environment; the decisions are affected by risk in a perceptible way (Crouhy, Galai & Mark, 2001). In order to operate at the international level, the management of Wal-Mart has developed various techniques to identify the risk and prepare the strategies of risk management (Leon, 2007).
There is no standard approach for risk management. There are some common elements of successful risk management efforts:
1. Recognition of the risk is the responsibility of a program management.
2. The risk management process includes planning for risk management, continuously identifying and analyzing program events, assessing the likelihood of their occurrence and consequences, incorporating handling actions to control risk events and monitoring the progress of program towards meeting program goals (Alan & Dempster, 2002).
Risk management is essential for a firm to improve the efficiency of the organization. The management of Wal-Mart We can apply this concept at the organization that will help to reduce the risk. The risk matrix will help to know the different ways of risk and also the techniques that will help in to remove the risks in the company (Crouhy, Galai & Mark, 2001). This concept also provides a flow chart to manage the risk in the project that makes the process of the risk management easier in the organization. The organization can improve the performance and effectiveness to adopt the tools and techniques of the risk management (Crouhy, Galai & Mark, 2001).
This concept of risk management is also related with the decision making process of the organization in a great manner. By evaluating and managing risk in the company through the collected information the management make strategic decisions. Implementation of risk management techniques helps the company to run the operations of the organization in the smooth manner (Alan & Dempster, 2002). The risk management strategies of Wal-Mart are cost effective and realistic to utilize the information in decision making process. By this way, this planning supports the organization in strategic and business planning.
There are various kinds of risks that are associated with the strategic environment of the retail industry. The management of the Wal-Mart has analyzed that there are following common risk available in the organization.
Project Risks: Project risks are related to the various new and running projects of the company. These risks comprise all the situations such as budget of the project, available resources, success and failure of projects, time, effective communication, team conflicts, etc. (Crouhy, Galai & Mark, 2001). Time frame of the project will also have a high impact because if the project is not completed on time the people associated with it would have to bear the problems like high cost and the purpose of the dinner will not be solved (Harris, 2006). If there is no proper communication among the project managers and the clients, then there would be high confusion (Alan & Dempster, 2002).
Customer Risks: The environment of the retail industry is highly changing. Presently, the needs and preferences of the customers change according ...
The solution examines risk management at Wal-Mart. The framework for handling risk in the organisation is developed.