Risk Management Essay Example | Topics and Well Written Essays - 10000 words

Risk Management - Essay Example1.What is the significance of reviewing the existing insecurity managements processes, procedures and requirements at the fountain of establishing risk circumstance stage of the risk management process? Establishing the risk context is essential in identifying the limits of any organisation, their risk management processes and the expected results. forwards instituting the context it is important to review the existing risk management as it has already evaluated the potential risks that can be sustained and losses incurred. These processes make up helped to wrap necessary measures to reduce the probability of occurring risks. Reviewing these existing procedures helps to improve and reassess their ability to mitigate and manage risks. It besides helps to identify the probability of new risks and the likelihood of aside risks occurring again. This is essential in establishing the value of existing strategies and the effect they have had on the org anisations assets, profitability, risk management, and their cost effectiveness. 2.Why is it essential that the scope of your risk management is clearly identified?The scope of risk management encompasses many things like identifying personnel such as stakeholders, timeframes, specific areas that need to be reviewed, and the pertinency of certain strategies. Therefore, it is very important that the scope be properly situated. This would help in accurately applying risk management sources without unnecessarily replicating them, help involve stakeholders, and advocate in achieving the desired goals. It will also help the organisation to manage their resources, target specific risk management areas, set proper timeframes for strategies and precisely define the desired goals. 3. Identify the possible internal and external stakeholders that an organisation might have. Internal External Employees Manager Owners Departments Work teams OHS department Committees Shareholders (e.g., small groups and business) Suppliers Society regimen Creditors Shareholders (e.g. public listed company) Customers Agents Other businesses Finance companies Chambers of commerce Creditors 4. Why is it important to consult with stakeholders when you are in the process of establishing the risk context? Different stakeholders have different issues and concerns, which means that we need to maintain a high level of interpersonal skills to engage stakeholder cooperation and find out what works for everybody, as well as be aware of what do they want to be informed of and when. Consultation with stakeholders will enable development and open communication, encourage cooperation, build communication early, and also give early notice of some issues that may arise (e.g., costs, timing, resources, other personnel involved and aspects of the process itself). Stakeholders can provide risk managers with information or so risks and who is likely to be affected by the processes, potential impacts or outc omes of the identified risks. They may have a much broader knowledge about risks, and therefore be able to help in identifying impacts. 5. What specific types of documentation should be reviewed during the establishing risk context stage of the risk management process for the following areas? Area / context Documentation Political and legal context Companies