Elements Of Risk Management Model

Risk management process

Elements of risk management model

Group 1

Lecturer : Mrs. W Brand

24821993 J SEKHOBO

2/19/2015

Introduction

Risk management is defined as the forecasting and evaluation also the identification of potential risk advance that the organization may have or face, analyzing and taking safety, measures on how to address and reduce the risk. It is also defined as the managerial function aimed to protect business assets, people and profits against the physical and financial consequences of risk. For example if the organization makes an investment decision, there are number of risks that the company is exposed to, it can be financial risk so in order to control and reduce the risk the fund

The manager should also understand the nature of the risk and see how the risk was created and how they interact on producing gaining or lose. The manager should make sure that the company stuff is aware of the major risks that they are facing in any point in time. Under hazard classify the moral, physical and morale hazard. Moral has to do with the behavior of the employee for example dishonesties stealing the company’s assets, where as in morale it has to do with the different attitude towards the company’s insured equipment or construction meaning the worker may be careless knowing that if anything happens to the company’s assets the insurance will pay.

Sloppiness and the carelessness of the workers of the Anglo American mine sometimes leads to the collapse of the mine known as the mine wall failure due to people’s behavior. Terrorism is also one of the risks that the Anglo American mine faces. Ricks such as fundamental examples: natural disasters affect the mining operations and the pollution that affects the third party and the political violence in country as well as the collapsing of the infrastructure above or below ground. The national strikes are also one of the risks mine encounter.

Risk Evaluation

Sharing or transferring of risk mean to give the risk to the third party like the insurance companies in this way the company reduce the expenses by so saying if the insured risk takes place then the insurance company will have to issue out the payment for that risk but if it was not insured the company will have to spend.

Anglo American mine implemented the systems that identify and provides with the causes of the risk. They introduced the program such as zero harm in action program, where the workers are taught to take the responsibility of their safety in their own hands, it empowers all the workers on how to address the risk especially hazard risk in the workplace. They take workers to a safety management training so that they can be able to avoid and remove the risk. For health of the employees they provide with the medical