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    The importance of risk management and eliminating risk

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    The importance of risk management is to reduce or eliminate risks in higher education. Risks such as physical, casualty, fiscal, business, and repetitional risks.

    1. Can we ever fully eliminate risk? If so, how? If not, why not? If we cannot eliminate risks, then what are we trying to accomplish through these risk management strategies?

    2. How do you know if you are doing a good job in this area? What are some challenges that you might face in implementing risk management strategies? What can you do as a leader to be proactive and mitigate these challenges?

    © BrainMass Inc. brainmass.com December 24, 2021, 11:59 pm ad1c9bdddf
    https://brainmass.com/education/educational-leadership/importance-risk-management-eliminating-risk-630395

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    1. Can we ever fully eliminate risk? If so, how? If not, why not? If we cannot eliminate risks, then what are we trying to accomplish through these risk management strategies?

    There is never any project or organization that is risk free as risks represent any unforeseen occurrence that can negatively impact the organization or project. Risks will always occur because circumstances that were not anticipated will always occur in any project or organizational strategy. There are four objectives that organizations attempt to accomplish through risk management strategies and these include avoiding risks, mitigating risks, transferring risks, and finally accepting risks while creating a contingency plan to provide an alternative strategy as a result of the risks.

    When attempting to avoid risks, the risk management strategy attempts to ensure that it adheres to policy objectives that can avoid any risks, but often this is not attainable. The next strategy is to mitigate risks to ensure that the least amount of damage occurs as a result of these risks. There are many ways to mitigate risks including transferring risks to other parties such as insurance carriers when purchasing insurance to insure vital business functions. Once a company has identified risks, they can cultivate contingency plans that will offer alternative options for the original strategic plan.

    In essence, the use of risk management planning is imperative because risks are unforeseen, and therefore, they must be included in the planning process wherein the objective is to attempt to identify the most significant risks, develop a plan on how these risks can feasibly be handled, and appropriate the necessary resources toward handling these risks.

    2. How do you know if you are doing a good job in this area? What are some challenges that you might face in implementing risk management strategies? What can you do as a leader to be proactive and mitigate these challenges?

    The organization will know whether it is doing a good job by the impact that risks have on the organization when they do occur. If credible contingency planning has occurred and the correct use of mitigation tactics has been implemented, risks will have little impact on the overall project because the organization has been proactive in mitigating risks. The challenges that are faced when attempting to mitigate risks are identifying risks, choosing the appropriate people and processes to address these risks, and effectively evaluating the impact that these risks will have on the organization.

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    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 11:59 pm ad1c9bdddf>
    https://brainmass.com/education/educational-leadership/importance-risk-management-eliminating-risk-630395

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