Risk management is a process that involves risk assessment and a mitigation strategy for the risks. This means that identification of potential risk and evaluation of the impact of the risk is necessary. This is what is called risk assessment. A mitigation strategy is a plan that has designed and put in place to minimize the impact of the potential risk events or the adverse effects of a risk on a project. Risks in a project are unpredictable. Some are yet to happen, and some will not occur. This means that one has to get prepared to deal with any risks. The underlying philosophy of handling risk is ...view middle of the document...
Goals and objectives
Defining the goals and objectives of risk management one has to come up with the company’s shared vision. The aims and objectives of risk management should establish what is needed and what is to be accomplished. These objectives are such as, developing an understanding or the risk in all parts of an organization so that risk management can be done in a cost-effective way and in a business way, understanding risk to help an organization achieve competitive advantage, earning-related surprises should be assessed and safeguarded, build effective responses to critical, catastrophic and low probability risks, management of resources should be done to save costs and the capital should be allocated efficiently. The goals and objectives of risk management should support the strategies and objectives of an organization. Other objectives or risk controls are designing the executing risk management process using strategic management process, ensuring that ownership questions are addressed (this helps in understanding authorities roles and responsibilities within an organization), designing and executing a process that monitors and reassess top risk profiles and identifies missing areas in risk management and finally, the information provides should be checked continuously.
Site and facility development
In every organization facilities and site, development is different. Therefore, risk management plan for every organization is different. Organizations should ensure that the services and sites developed safely for their staff members. Documentation is also important to show that the facilities and sites developed are safe to use. The management should assess what they should do to improve the conditions of their facilities and sites. Inspection is done to establish for any high or low potential risks or hazards. There are institutions to do these assessments and identify anything that may cause failure or hazards to individual using the facilities and sites. Some of the factors that may cause risks in services and places are; duty, breach, causation, and damages. In the part of functions, the individual assigned to different tasks should perform their respective functions to avoid hazards that may come up due to negligence. They should complete their duties and with caution to avoid breach and discretion. Damages on facilities and sites may also cause hazards in an organization or place of work. Facilities and venues should be checked regularly to avoid this risks which are part of risk management.
In risk management frameworks should be established to enable organizations and institutions identify and manage the risks that may come up from failed processes, systems, policies, human errors of other unforeseen events. To develop these programs, risk management team should follow the following steps; assessing, designing, training, implementing and monitoring. Accessing means that the team should evaluate...