Action Planning Definition

In the fast paced, corporate world of today managers need to be prepared for any possible situation that may arise in an organization as, there are continuously economic, environmental, technological and changes that affect the internalization or an organization. Thus long term, action planning is essential for an organization to reach its intended results even though it may be risky but, without taking any risks an organization cannot grow or improve their position in the global economy. Effective management is critical as it is important for an organization to manage their risks by turning challenges into opportunities by adopting strategies that help decide which risks taking and which ones to forgo. Organizations in South Africa are governed

Strategies are mechanisms adopted by an organization as solutions to help keep things in order and to pave the way toward its desired objectives (Carrell., Elbert., et al., 1998). Risk is a future, uncertain event or condition with a probability of occurrence (Barnabei, 2008 & Fadun, 2013). If it is to occur it may have a positive or negative effect, a possible loss or impact on a projects achievement of objectives (Renn, 2008). Risks can occur in any form, some of the most common risks in an organization that are likely to occur are operational, credit or market risks (Barnabei, 2008 & Fadun, 2013). Risk management fundamental in an organization as it is the managing of risks in an organizations operations whereby they do not try to eliminate or avoid the risk but rather harness the opportunities and minimize its threats (Fadun, 2013 & Renn & Walker, 2008). Risk management

Rosa, & Webler, 2001). Risks are ranked according to their priority of most critical to least critical in order to establish a basis for allocating critical, limited resources available in the organization (Fadun, 2013 & Keegan, 2004). Strategies or response are: 1) Risk Avoidance which is the altering a plan so that the circumstances that may give rise to the risk no longer exist but other aspects may incur such as additional costing for converting the plan or adjusting certain requirements (Keegan, 2004) . 2) Risk Control or Mitigation which is taking steps to reduce the probability or negative impact of the risk (Mogaud, 2000). 3) Risk Transference which, is the shifting of ownership and impact of a risk to a third party who is willing to accept the responsibility such as, outsourcing to subcontractors (Magoud, 2000 & Renn,