StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Adoption of a Formal Risk Management Process - Dissertation Example

Cite this document
Summary
The aim of the paper 'Adoption of a Formal Risk Management Process' is to provide and propose to the senior management a detailed case for adopting a formal risk management process. Risk management is one of those fields that have benefited from the advancements made in the 20th century…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
Adoption of a Formal Risk Management Process
Read Text Preview

Extract of sample "Adoption of a Formal Risk Management Process"

Download file to see previous pages Companies today face a considerable number of risks also because of international factors such as globalization, outsourcing, and intense competition. Therefore, it is important for all companies to satisfy their risk needs through a formal risk management system. However, careful analysis and planning must precede the entire operation. This not only helps in smoother implementation, but companies can also develop plans to tackle some of the inherent limitations and disadvantages of the system beforehand. It will also help the company determine the best course of action with regard to the risk management strategy eventually adopted. Once selected, the actual system is guided by a number of standard processes and phases each with its own set of requirements and objectives. The entire process is of a cyclic nature that starts with the identification and analysis phase and ends with the monitoring phase for a company new to the process, whereas in existing systems all the phases are carried out continuously.

This is the only way to ensure the effectiveness of the system. However, it need not be overhead and the entire process can be integrated into the schedules of the employees of the company. Senior management involvement also goes a long way in ensuring the effectiveness of the system. Once implemented as per guidelines and having taken appropriate precautions, it is possible not only to achieve a safer degree of operation within the company; other benefits can also be reaped. For instance, risk management systems can offer one of the ways of developing a long-term competitive advantage which is critical in today's competitive environment. Risk management systems are still evolving and are in a dynamic state. Future work that establishes better guidelines for the implementation will assist several companies in understanding and implementing their own systems that are based on a unique structure and satisfying demands.

Research Question
“In an increasingly dynamic environment, strategic management of risk has become a critical competency for organizations. From the perspective of an Operations Manager, present a case to the board of directors for the adoption of a formal risk management process.”

Objectives
To achieve the aim of the report following objectives will have to be met:
A. Demonstrate the importance of the Risk Management Process in an organization
B. To present the advantages and disadvantages of adopting a formal risk management process
C. To Analyse and Discuss why the organization should adopt a formal risk management process
D. To Conclude the findings of the report and present recommendations to the board

Risk management is a hotly debated topic today. Companies debate about the nature and importance given to formal risk management systems. However, risk management has been an integral part of the business ever since the early years of trade. Risk management today, on the other hand, looks nothing similar to that practiced even as late as the 1970s (Skipper & Kwon, 2008). ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“In an increasingly dynamic environment, strategic management of risk Dissertation”, n.d.)
Retrieved from https://studentshare.org/other/1426137-in-an-increasingly-dynamic-environment-strategic
(In an Increasingly Dynamic Environment, Strategic Management of Risk Dissertation)
https://studentshare.org/other/1426137-in-an-increasingly-dynamic-environment-strategic.
“In an Increasingly Dynamic Environment, Strategic Management of Risk Dissertation”, n.d. https://studentshare.org/other/1426137-in-an-increasingly-dynamic-environment-strategic.
  • Cited: 0 times

CHECK THESE SAMPLES OF Adoption of a Formal Risk Management Process

Risk assessment and risk management associated with Carbon Capture and Storage (CCS)

Purpose of the Study This paper will review available literature addressing the risks assessment sand risk management of carbon capture and storage.... They describe carbon capture and sequestration as the process where carbon will be captured from industrial sources and it's ultimately disposal it by storing it in underground geologic reservoirs rather than releasing it to the atmosphere (Stephens, 2006, p.... This means that it is possible to understand the risks associated with this technology and diverse strategies to manage this risk with include risks to the environment and human health and safety (Farret et al....
20 Pages (5000 words) Literature review

A Firms Risk Consciousness

This essay "A Firm's risk Consciousness" is about risks that are identified, evaluated, and measured through quantitative tools and statistical methods so that the strategic planners would gain a near-to-accurate insight into the potential scope in any specific industry.... For instance, if the risks associated with any business are high then investors also expect a high rate of return because of the effort and risk involved....
5 Pages (1250 words) Essay

Risk Management Practices: Benefits and Limitations

Integration of a formal risk management process along with these functions benefits the organization in a lot of ways.... he importance of a formal risk management process can be understood from the benefits that it has provided to the companies that have already incorporated the process within their system.... The dissertation "Risk Management Practices: Benefits and Limitations" focuses on the critical analysis of the risk management process, its benefits, and limitations to have a broad view on the necessity for organizations to incorporate a formal risk management process within their management system....
46 Pages (11500 words) Dissertation

Risk Management: Theory and Practice

Executive Summary This topic was conceived to provide a comprehensive understanding of risk management in general and a formal risk management process to be recommended to the board of directors of an organisation.... case studies), analysis and discussion on important aspects of risk management processes in organisations.... risk management is one of the very important tasks and responsibilities in businesses today.... According to various definitions, risk management is about events that are still forthcoming....
47 Pages (11750 words) Dissertation

Risk Profile, Its Benefits to Risk Management

The paper "Risk Profile, Its Benefits to risk management" highlights that generally speaking, Change Control Management refers to the process of management requesting, reviewing, approving, carrying out and controlling changes to a project's deliverables.... It eases risk management since adopting previous approaches that were successful is less risky than formulating new management strategies.... Or the deviations of decisions in the non-fulfilment of the requirements of a job course, or process....
6 Pages (1500 words) Essay

Developing Effective Skills in Risk Management

"Developing Effective Skills in risk management" paper explores the dilemma that parents, and practitioners face between protecting children from risks while encouraging them to develop effective skills in risk management.... There are several studies which present factors that influence the management of risks in individuals and children.... risk has been defined mathematically as the product of the probability and the utility of a possible future event (Adams, 1996)....
6 Pages (1500 words) Coursework

Value and Risk Management

And how Application of risk management process will not only improve the financial success of the projects but being in the social infrastructure sector.... Value management and value engineering follow-up study are important innovations in the project management process.... This research describes why value management is an important innovation in the domain of project management.... Apart from creating a large return for a minimal investment in the value management study, it provides optimum value for money of the project with improved functionality....
26 Pages (6500 words) Research Paper

Risk Management and Investment - Bonds and Security Investments

The paper "risk management and Investment - Bonds and Security Investments" is an engrossing example of coursework on finance and accounting.... The paper "risk management and Investment - Bonds and Security Investments" is an engrossing example of coursework on finance and accounting.... However, the derivatives strategies have not to be advised due to complications involved in the management of the financial derivatives.... The author argues in a well-organized manner that the main idea behind this theory is the assumption made by the risk-averse investor and the possible returns....
17 Pages (4250 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us