Risk Management Essay Example | Topics and Well Written Essays - 10000 words

Risk Management - Essay Example1.What is the significance of freshen uping the existing peril managements processes, procedures and requirements at the commencement of establishing stake background stage of the risk management process? Establishing the risk context is infixed in identifying the limits of any organisation, their risk management processes and the expected results. Before instituting the context it is all-important(prenominal) to review the existing risk management as it has already evaluated the potential risks that can be sustained and losings incurred. These processes have gartered to introduce necessary measures to reduce the probability of occurring risks. Reviewing these existing procedures helps to improve and reassess their ability to palliate and manage risks. It also helps to identify the probability of new risks and the the likes oflihood of past risks occurring again. This is essential in establishing the take to be of existing strategies and the ef fect they have had on the organisations assets, profitability, risk management, and their cost effectiveness. 2.Why is it essential that the scope of your risk management is clearly identified?The scope of risk management encompasses many things like identifying personnel such as stakeholders, timeframes, specific areas that accept to be reviewed, and the applicability of certain strategies. Therefore, it is very important that the scope be properly defined. This would help in accurately applying risk management sources without unnecessarily replicating them, help involve stakeholders, and aid in achieving the desired goals. It volition also help the organisation to manage their resources, position specific risk management areas, set proper timeframes for strategies and precisely define the desired goals. 3. Identify the likely internal and external stakeholders that an organisation might have. Internal External Employees Manager Owners Departments Work teams OHS department Comm ittees Shareholders (e.g., miniature groups and business) Suppliers Society Government Creditors Shareholders (e.g. public listed company) Customers Agents Other businesses Finance companies Chambers of commerce Creditors 4. Why is it important to confab with stakeholders when you are in the process of establishing the risk context? Different stakeholders have different issues and concerns, which means that we need to maintain a high level of interpersonal skills to engage stakeholder cooperation and find out what works for everybody, as well as be aware of what do they want to be informed of and when. Consultation with stakeholders will enable development and open communication, encourage cooperation, build communication early, and also give early find out of some issues that whitethorn arise (e.g., costs, timing, resources, other personnel involved and aspects of the process itself). Stakeholders can provide risk managers with information about risks and who is likely to be aff ected by the processes, potential impacts or outcomes of the identified risks. They may have a much broader knowledge about risks, and therefore be able to help in identifying impacts. 5. What specific types of documentation should be reviewed during the establishing risk context stage of the risk management process for the pastime areas? Area / context Documentation Political and legal context Companies