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ASSIGNMENT 1: VIEW OF RISK MANAGEMENT
Suppose a senior manager of an organisation, when asked about the relevance of risk management says: “What risk management means in my organisation is to make sure we are profitable by employing suitable people, training them to use the equipment and getting our products to customers. ... ”
Explain to what extent the above statement, while not uncommon, represents an inadequate view of risk management. In your answer you must describe how you would describe the relevance of risk management and make use of at least one practical example to clarify the issues being considered. Also make clear the difference between the terms ‘cause’ and ‘contributing factors’ in relation to any risk situation. ... RELEVANCE OF RISK MANAGEMENT 2
2.1 OBSERVING RISK 2
2. ... INTRODUCTION
Risk management can be described as a relatively new discipline with its origins arising out of engineering and insurance (Bohle and Quinlan 2000) and like many new disciplines it has numerous definitions. Essentially these definitions do have a commonality of describing risk management as a process or system that identifies and controls risk. Risk management deals with possible future events. ...
The Australian and New Zealand Standards (AS/NZS 4360:1999) provides the following insight into risk management. “Risk management is the term applied to the logical and systematic method of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risks associated with activity, function or process in a way that will enable organisations to minimise losses and maximise opportunities.” Risk management deals with identifying the nature of risk such as the likelihood that it will occur and the severity of the outcome if it does occur. Furthermore through a managed and planned approach to risk organisations can both gain opportunities and avoid losses.
The following section compares the manager’s view of risk management with the above description.
Approximate Word count = 1499
Approximate Pages = 6
(250 words per page double spaced)
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