The risk management process is all about identifying exposures to risks, measuring those exposures and making a decision on how to protect the business from the risks (Kidwell et al., 2016). There are several risks that a bank is exposed to that could impact its organizational strategy
A risk analysis or Kurt Lewin’s (1951) Force Field Analysis are ideal tools for businesses to access and weigh their options with regards to the severity of the risk that the business will be exposed to and whether the risk is worth taking. Pritchard and PMP (2014) state that every project involves a certain level of risk and therefore it’s success is the precursor in determining which risks are worth taking on and which are to be avoided. With the passage of time, there are several factors that contribute to organisations adopting a robust risk management framework, such as technical complexity, conflict of interests at a board level and across the organization, and manipulation of any kind in business, amongst a host of other contributing reasons. 4.3 Principles of Sound Risk Management: In order for a business to strike the ever elusive balance between profitability and maintaining a strong business ethos, it is imperative that they understand and follow the principles of sound risk management. Larcker and Tayan (2015) define risk management as the process where organisations self-assess their exposure to risk.
Managing risks means analysing the project works to identify all the risks that may occur and being proactive in devising countermeasures in the event the risks do come to pass. By doing so you can minimize risk and increase the chance of success of a
CHAPTER 3. SAFETY RISK ASSESSMENT IN MINES Risk assessment is the procedure used to focus probability that individuals may be exposed to a damage, sickness or infection in the work environment emerging from any circumstance distinguished during the hazard identification process before attention or execution of control measures. Risk happens when an individual is presented to a hazardous circumstance. Risk is the probability that introduction to a hazard will prompt a damage or a wellbeing issue. It is a measure of the likelihood and potential seriousness of damage or harm.
At the point when the authoritative setup is comprehended, the danger appraisal can be performed, which is developed from two noteworthy parts; Risk Analysis and Risk Evaluation. The principal period of a Risk Analysis is to distinguish which dangers and unsettling influences the association is confronting. As depicted by IRM (2002), the danger introducing so as to distinguish proof can be performed various diverse procedures, for example, conceptualizing, industry benchmarking, HAZOP examination, hazard appraisal workshops and reviewing. The general point of these exercises is to perceive exercises where the organization is presented to instabilities and to discover the dangers connected with these exercises. Furthermore, IRM (2002) proposes that the recognized dangers ought to be further portrayed in a plain organization where expansion data in regards to every danger is introduced.
Risk identification is a very challenging process for management because there are various ways and method used to identify risk (Baccarin, Love and Salm, 2004 ). The success or failure of an enterprise resource planning system is determined by how the risk that might affect the implementation of it is identified (Wallace, Keil and Rai, 2004). This is very challenging because different people have different opinions and different factors need to be taken into consideration when identifying risk. Some of these factors are technology, finance and competition. It is essential for risk to be identified earlier than later to ensure that it is managed effectively throughout the enterprise resource planning system project.
As part of managing the health and safety of people, risks should be controlled. A risk refers to situations where outcomes are uncertain. There is no sector of life, business, the economy or the environment that is immune to risks. Prior to controlling and managing risks, it is important to know the nature, the likelihood of occurrence and the magnitude of risks (DEAT, 2006). Botkin & Keller, 2014 defines risk assessment in toxicology as “the process of determining potential adverse health effects of exposure to toxic materials”.
Effective risk management strategies allow us to identify our project’s strengths, weaknesses, opportunities and threats. By preparing for unpredicted events, we can be prepared to respond if they arise. To guarantee the project’s success, the manner of which potential risks will be dealt with should be defined clearly so that we can identify, mitigate or avoid problems when we need to do. Successful project managers know that risk management is essential. Accomplishing project goals depends a lot on planning, preparation, results and evaluation that helps achieving strategic goals.
Critical analysis of these inputs would help to inform on the necessity of project managers to carry risk monitoring: Risk Management Plan The risk management plan details how to approach and manage project risk and is usually extracted from the project logical framework (Perminova, Gustafsson & Wikström, 2008). The description of how and when monitoring of risks should be done is in this plan. It also provides “guidance around budgeting and timing for risk-related activities, thresholds, reporting formats, and tracking” (Kendrick, 2015). Risk Register This contains the comprehensive risk listing for the project (Rosenau & Githens, 2011) within which the key inputs into risk monitoring and control are the bought into, agreed to, and classified as realistic (Loch, DeMeyer & Pich, 2011). Such a requirement is part of good project management practice where the key lead person is the project manager.