Ryanair: The Failure Of Risk Management In A Company

1218 Words5 Pages
The field of risk management is an imperative part of organisations today. The overall aim of this essay is to outline the failure of risk management in an extremely topical company known as Ryanair. The objective is to examine the risks associated with the mismanagement of employees, its effects on staff as well as customers perceptions of the company’s brand. Along with, ways in which the organisation could implement improved risk management by revising it’s working environment.

In the twenty-first century, risk can be depicted as calculating uncertainties of which the probability may be known or unknown. It can also be characterised as establishing control over the future (Beck 2002). Everybody at some stage has encountered risk in their
…show more content…
It is vital for companies to identify the risks within their organisation and, regulate them correctly before it is too late (CareersinAudit.com 2013). For effective risk management to take place, all departments and, management must interact with each other to identify and, prevent obstacles from arising (Al-Thani and Merna 2008).

Ryanair is an Irish-owned multinational company who is undoubtedly Europe’s most profitable low-cost airline for years now. The airline received €1.3bn profits this year up until the end of March along with, cutting ticket prices to entice more customers (the Guardian 2017). However, at present the company is having problems with their mistreatment of employees as well as, the dissatisfaction felt by customers as seen all over the media recently. The company’s poor risk management with regards to their employee’s satisfaction has created many negative effects for the
…show more content…
It is a known fact that the workplace is somewhere each and, every one of us spend a substantial amount of time each week. Many companies are finding today that there is a strong tie between employee satisfaction and, customer satisfaction. As a result, it is immensely important that a positive working environment exists (Warigon 2017). One major risk is the possibility of Ryanair losing a vast number of employees each year. Throughout the disturbances over the past few weeks, many pilots rejected bonus offers of €12,000 highlighting the lack of loyalty to the company (McMahon 2017). It is estimated that the organisation has lost up to one hundred and forty pilots to the new Norwegian airline this year alone. The Irish independent (2017) announced figures that the costs of staff turnover in the company surged from €69.9m last year to €83.2m in 2017. The costs of high staff turnover incorporate the costs of advertising, interviewing, and selection of employees. It also includes the cost of losing an experienced worker with customer service skills that, may take up to a year to

More about Ryanair: The Failure Of Risk Management In A Company

Open Document